Chandigarh, April 4
The Punjab government has given taxpayers a final two-month window to clear old tax dues, extending its One Time Settlement (OTS) Scheme until 31 May 2026.
The scheme, which was supposed to end on 31 March, has now been extended by the Bhagwant Mann government in what Finance Minister Harpal Singh Cheema described as the last chance for eligible taxpayers to settle pending liabilities and avoid tougher action later.
Cheema said the move is aimed at helping businesses and individuals resolve long-pending tax disputes while also improving revenue collection for the state.
At the same time, he made it clear that the extension should not be seen as an open-ended relaxation.
The minister warned that the taxation department has already identified around 8,000 properties linked to tax defaulters, and those could face attachment or auction if dues are not cleared before the new deadline.
So far, the scheme has drawn a strong response. According to the government, the taxation department has received 9,151 applications, helping the state recover Rs 134.21 crore in revenue.
Cheema said the scheme has also provided major relief to businesses, with the government already granting waivers worth Rs 446.17 crore under the current settlement process.
Officials said the extension was granted after feedback from field offices, with many taxpayers still looking to use the scheme. The government believes a longer window could encourage more people to come forward, reduce legal disputes and improve compliance.
Cheema also pointed to the success of earlier settlement drives, saying previous versions of the OTS scheme had seen strong participation, suggesting that many eligible taxpayers may still be able to benefit if they act in time.
But the government’s message was clear: this is the final opportunity.
After 31 May, officials say recovery proceedings will begin against those who continue to ignore their dues. That could include property attachment and auction in cases where recovery becomes necessary.
The Mann government says the scheme is part of a broader effort to offer a fair and transparent way to settle legacy tax disputes, while giving businesses a chance to regularise their accounts without lengthy legal battles.
For taxpayers still sitting on old liabilities, the state has now offered extra time — but also a firm warning that the grace period will not last much longer.
