Chandigarh, July 31, 2026 (Yes Punjab News)
The Punjab Government has extended the deadline for its One-Time Settlement (OTS)-2025 Scheme for pre-GST tax dues till September 30, 2026, giving taxpayers one final opportunity to settle pending tax disputes and avail statutory relief.
Announcing the extension on Friday, Punjab Finance, Excise and Taxation Minister Advocate Harpal Singh Cheema said the scheme has received an encouraging response, with taxpayers depositing ₹167.23 crore while the government has granted relief worth ₹534.54 crore in tax, interest and penalties.
Cheema said that as of July 30, the Excise and Taxation Department had received 9,782 applications involving a total tax demand of ₹437.51 crore. He said the response reflected taxpayers’ confidence in the government’s transparent and business-friendly policies aimed at resolving legacy tax disputes.
The minister urged the remaining 9,386 eligible taxpayers to utilise the extended deadline and avail a 100 per cent waiver on interest and penalties, along with slab-based relief in principal tax dues.
Describing the extension as the “last opportunity”, Cheema warned that no further extension would be granted. He said strict recovery proceedings, including bank account freezes and property auctions under the Punjab Land Revenue Act, would be initiated after September 30 against defaulting taxpayers.
Highlighting the government’s enforcement efforts, Cheema said the department has recovered over ₹12.39 crore through property attachment and auction proceedings, prompting many defaulters to opt for the OTS scheme.
He also revealed that 13 auction proceedings have been scheduled during August 2026 to recover outstanding dues of around ₹48.48 crore and advised the concerned taxpayers to settle their liabilities before the auctions.
The minister further said the department is supporting the Supreme Court’s SAMADHAN initiative, under which 12 major tax disputes have already been resolved amicably, while four more cases are expected to be settled soon.
Cheema said the government remains committed to promoting ease of doing business by balancing taxpayer-friendly policies with firm action against habitual tax defaulters.
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