One-time settlement scheme a big relief for property tax defaulters

The Punjab Government announced a significant relief measure for property tax defaulters through a one-time settlement (OTS) scheme launched by the Department of Local Government here recently. As per the official notification issued by Additional Chief Secretary Tejveer Singh, property owners who have pending dues can now pay only the principal amount of their property tax without any interest or penalty, provided the payment is made by July 31, 2025.

The scheme covers all outstanding or partially paid property tax amounts due up to March 31, 2025. In a move aimed at easing the financial burden on defaulters and encouraging them to clear their dues, the state government has decided to waive off all penalties and interest if the outstanding principal is paid in full within the stipulated deadline.

Earlier, defaulters, particularly those with dues from before 2023, were liable to pay up to 50 per cent extra as penalty and interest, making it difficult for many to settle their accounts.

According to the notification, if any defaulter fails to avail the full waiver by July 31 but manages to pay the dues between August 1 and October 31, 2025, they will still be eligible for a 50 per cent waiver on penalties and interest. However, no relief will be granted after October 31, and the entire amount including applicable penalties and interest will become payable as per the existing laws under the Punjab Municipal Act, 1911, and the Punjab Municipal Corporation Act, 1976.

The decision is expected to benefit a large number of individuals and commercial property owners across the state who have been struggling with accumulated tax liabilities. It is also seen as a step towards strengthening the financial health of municipal bodies by encouraging voluntary compliance and improving tax collection.

Tejveer Singh, while issuing a notification from Chandigarh, stated that the government’s intent is to provide an opportunity for taxpayers to come forward, clear their dues without additional financial burden and contribute to work for the betterment of urban infrastructure and services.

Amritsar