Chandigarh: The Punjab govt on Saturday announced a two-month extension for the One Time Settlement (OTS) scheme for recovery of outstanding dues, 2025. Originally slated to conclude on March 31, 2026, the final date for filing applications has been pushed to May 31, 2026, said finance minister Harpal Singh Cheema.Cheema informed that so far the taxation department has received 9,151 applications, with a total revenue realisation of Rs 134.21 crore. The state govt already extended waivers amounting to Rs 446.17 crore. “This extension provides a final opportunity for eligible taxpayers to resolve their pending dues and secure financial relief. The taxation department has already identified 8,000 properties belonging to tax defaulters, which will face auction soon if they do not promptly act on this last chance,” he said. “While OTS-2 in the fiscal year 2022-23 saw the receipt and disposal of 2,487 applications, OTS-3 in the fiscal year 2023-24 recorded the disposal of approximately 70,000 applications. It suggests that a large segment of eligible taxpayers has yet to avail themselves of the benefits under the current 2025 scheme,” he said. He said that the decision to grant this latest extension was based on feedback received by the state govt, with the primary objectives of maximising taxpayer participation, reducing ongoing litigation, and facilitating enhanced revenue realisation for the state treasury. Cheema issued a “warning” to intentional defaulters, clarifying that this will be the absolute final window of opportunity. “The taxpayers who fail to participate in the scheme by the May 31, 2026, deadline will face severe recovery proceedings in strict accordance with the law. The taxation department has already proactively identified a substantial number of default cases.”
