Punjab Newsline | Chandigarh
Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema on Friday announced that the Punjab One Time Settlement (OTS-2025) Scheme for resolving pre-GST tax arrears has received an overwhelmingly positive response from taxpayers.
To provide eligible taxpayers with a final opportunity to settle long-pending tax disputes and obtain comprehensive legal relief, the state government has extended the scheme from July 31, 2026, to September 30, 2026.
According to an official press statement, the Excise and Taxation Department has received 9,782 applications up to July 30, 2026, involving a total tax demand of ₹437.51 crore. Against these claims, taxpayers have deposited ₹167.23 crore, while the government has granted ₹534.54 crore in relief through waivers of tax, interest, and penalties.
Cheema said the figures reflect growing confidence among taxpayers in the Punjab government’s transparent, industry-friendly, and business-supportive policies. He added that the government aims to resolve old tax disputes and provide local industries and traders with a fresh start.
At the same time, the minister warned that the government is adopting a strict approach against chronic tax defaulters. The department has intensified property attachment and auction proceedings against old VAT defaulters and has already recovered more than ₹12.39 crore through these actions.
He noted that several taxpayers chose to settle their dues under the OTS scheme after enforcement or auction proceedings were initiated against them.
Appealing to the remaining 9,386 eligible taxpayers, Cheema urged them to avail themselves of the scheme before September 30, 2026, to receive 100% waiver of interest and penalties along with substantial relief in the principal tax amount according to the applicable slab.
Minister clarified that the current extension is final and no further extension will be granted. After the deadline, the department will accelerate recovery proceedings under tax laws and the Punjab Land Revenue Act, including sealing bank accounts, attaching properties, and conducting auctions.
He also informed that the department has scheduled 13 auction proceedings in August 2026 to recover outstanding dues of approximately ₹48.48 crore. Concerned taxpayers have been advised to settle their cases under the OTS scheme before the auction dates to avoid coercive action.
