Tax Relief Bonanza: AMC Announces 100% Interest Waiver for Slums, 75-85% for Homeowners in 2026 Scheme

AHMEDABAD, Gujarat — In a major pre-election fiscal maneuver, the Ahmedabad Municipal Corporation (AMC) has greenlit a sweeping Property Tax Interest Waiver Scheme for 2026. The policy, approved by the Standing Committee on Friday, aims to clear the massive backlog of unpaid dues by offering substantial rebates on accumulated interest.

The scheme, which kicks off on January 1, 2026, offers a sliding scale of benefits, with the highest relief targeted at residential property owners and chawl residents during the first month.

Here is the investigative breakdown of the tiered relief structure and the critical deadlines for taxpayers.

The Tiers: Early Birds Get Bigger Discounts

The waiver scheme is structured into three distinct phases, incentivizing early payment. Standing Committee Chairman Devang Dani outlined the following breakdown for residential and commercial properties:

Phase 1: January 1 – January 31, 2026

• Residential: 85% waiver on interest.

• Commercial: 65% waiver on interest.

Phase 2: February 1 – February 28, 2026

• Residential: 80% waiver on interest.

• Commercial: 60% waiver on interest.

Phase 3: March 1 – March 31, 2026

• Residential: 75% waiver on interest.

• Commercial: 50% waiver on interest.

The “100% Relief” Clause: A special provision has been made for the most vulnerable sections. Residents of chawls and slums (jhupadpatti) will receive a 100% interest waiver on their unpaid tax dues, regardless of the payment month within the scheme period. Additionally, properties assessed under the “Old Formula” (pre-2022 norms) will also be eligible for a 100% interest waiver.

The Strategy: Recovering Dead Revenue

The AMC’s move is driven by a need to boost revenue collection before the fiscal year ends.

• The Context: Property tax remains the primary income source for the civic body. By waiving the interest component—often a major deterrent for defaulters—the administration hopes to recover the principal amount.

• Track Record: A similar scheme in 2024-25 generated Rs 1,745.61 crore in revenue.

• Current Status: From April 1, 2025, to mid-December, the AMC has collected Rs 1,710 crore, with Rs 1,334.70 crore coming specifically from property tax.

The Fine Print

• Eligibility: The waiver applies to “interest” on unpaid tax, not the principal tax amount itself.

• Scope: The scheme covers current year outstanding tax as well as arrears.

• Approval: The proposal, initially cleared by the Revenue Committee, has now received the final stamp of approval from the Standing Committee.