Last date extended from March 31 to May 31, last chance for taxpayers to settle their dues: Harpal Singh Cheema.
OTS receives strong support, recovers Rs 134.21 crore and provides rebates worth Rs 446.17 crore to traders.
–The decision to extend the last date was taken based on the feedback received directly from eligible taxpayers: Harpal Singh Cheema.
8,000 properties of tax defaulters identified, will be auctioned soon if OTS is not availed immediately: Harpal Singh Cheema.
Chandigarh, April 4:
The Punjab government, led by Chief Minister Bhagwant Singh Mann, has officially announced a two-month extension to the Punjab One Time Settlement Scheme (OTS) for Recovery of Dues, 2025. Originally scheduled for March 31, 2026, the deadline for submitting applications has now been extended to May 31, 2026. Making the announcement here today, Punjab Finance, Excise and Taxation Minister, Advocate Harpal Singh Cheema, emphasized that this extension provides a crucial and final opportunity for eligible taxpayers to settle their dues and receive significant financial relief. He further warned that the tax department has already identified 8,000 properties belonging to tax defaulters, and if they do not immediately avail themselves of this final opportunity, these will soon be auctioned.
Sharing the latest progress of the initiative through a press statement issued here, Finance Minister Harpal Singh Cheema said that the scheme has received an overwhelming and encouraging response across the state. He said, “So far, the Tax Department has successfully received 9,151 applications. This enthusiastic participation has resulted in a total revenue collection of Rs 134.21 crore, which is a symbol of taxpayers’ faith in the current government and consistent revenue collection. Furthermore, businesses have benefited significantly from this initiative, with the effective relief of Rs 446.17 crore provided by the state government.
“Highlighting the success of previous OTS schemes, Finance Minister Cheema said, “In FY 2022-23, 2,487 applications were received and disposed of under OTS-2, while in FY 2023-24, nearly 70,000 applications were disposed of under OTS-3. This historic participation reflects the huge potential of such schemes and indicates that a large proportion of eligible taxpayers are still deprived of benefits under the current 2025 scheme.” He added that the decision to extend the deadline was based on direct field feedback, primarily aimed at ensuring maximum taxpayer participation, significantly reducing ongoing litigation, and further increasing revenue collection for the state treasury.
Despite the extension, the Finance Minister issued a stern and clear warning to wilful defaulters, stating that this would be their last chance. He said, “Taxpayers who do not join the scheme by the deadline of May 31, 2026, will face strict recovery action as per the law. The tax department has already proactively identified a large number of default cases.
“Finance Minister Cheema clarified that wherever necessary, the state government will vigorously initiate the process of confiscation and auction of properties to recover the outstanding tax.
Reiterating the comprehensive vision of the Punjab Government led by Chief Minister Bhagwant Singh Mann, Finance Minister Harpal Singh Cheema said that the state government is fully committed to providing a fair, transparent, and highly efficient system for resolving old tax disputes. He said, “This strategic initiative not only helps the business community clear their old dues but also strengthens the state’s financial position. All eligible taxpayers are strongly urged to take advantage of the extended deadline and settle their dues promptly to avoid any stringent recovery action in the future.”
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