Introduction
As part of a move to provide relief to property owners, the Andhra Pradesh government has issued an order waiving interest on property tax arrears till the financial year 2023-24, according to media reports. The same time scale applies in all Urban Local Bodies (ULBs). Taxpayers can avail this benefit by paying all their dues for 2023-24 till March 31, 2024.
Vijayawada: Andhra Pradesh government officials on Thursday issued an order waiving interest on property tax arrears of municipalities and municipal corporations at once till the financial year 2023-2024. Regarding waiver of interest, Special Chief Secretary Y. Srilakshmi said that GO: 35 has been released.
Waiver of Interest on Property Tax Arrears
Property tax should be paid for the first half of the year by the end of June and for the second half by the end of December. In case of non-payment, simple interest at the rate of two percent per month shall be charged, the order said.
Various individuals, offices, and associations, like CREDAI, have sought a waiver of interest on late property tax payments this year as well. In the previous financial year, an interest waiver was provided only for 14 days on the condition that the entire dues were paid in one lump sum. Due to this many assesses could not avail of interest waiver benefits for a short period.
AP Government: Pay the Total Dues and Tax
Section 679-E of the Municipal Corporations Act, 1955, is provided under Section 387-A of the AP Municipalities Act, 1965. The GO stated this after careful consideration of the powers of AP and intending to improve revenue to ULBs. The State Government has ordered a waiver of accrued interest on arrears of property tax (buildings & vacant land) till the year 2023–24 in all ULBs as a one-time measure.
“It is subject to the condition that the assesses shall pay the total dues and tax of the current year in a lump sum or by 31.03.2024 or in installments. Taxpayers are already paying the dues in the year 2023-24. Current year property tax demand is adjusted against future property tax payments. No refund subject to clearance of all dues by 31.03 2024.” It is stated in the order.
Also read: Property Tax in Andhra Pradesh 2024: Do You Know About It?