CHANDIGARH: The Punjab government announced on Saturday a two-month extension for the One Time Settlement (OTS) scheme aimed at recovering outstanding dues, now extended to May 31, 2026, from the original March 31, 2026 deadline, according to finance minister Harpal Singh Cheema.
Cheema mentioned that the taxation department has received 9,151 applications so far, resulting in a total revenue collection of ₹134.21 crore. The state government has already granted waivers amounting to ₹446.17 crore.
“This extension offers a final chance for eligible taxpayers to settle their dues and achieve financial relief. The taxation department has also identified 8,000 properties belonging to tax defaulters, which will be auctioned soon if they fail to take action during this last opportunity,” he added.
He noted that OTS-2 in the fiscal year 2022-23 handled 2,487 applications while OTS-3 in 2023-24 processed around 70,000 applications. This indicates that many eligible taxpayers still have not availed themselves of the benefits under the current 2025 scheme.
Cheema explained that the decision for this extension was made based on feedback to enhance taxpayer participation, minimize ongoing litigation, and improve revenue for the state treasury.
He cautioned intentional defaulters, stating, “This is the final opportunity. Taxpayers who do not participate by May 31, 2026, will face strict recovery actions in accordance with the law. The taxation department is proactively identifying a significant number of default cases.”
