Unprecedented Response: Over 7,654 Applications Received Under OTS-2025
Bhagwant Mann Government Emphasizes Voluntary Compliance to Reduce Litigation
OTS-2025 Provides Major Waivers; Deadline Extended to March 31, 2026
Minister Urges Eligible Taxpayers to Seize This Opportunity
CHANDIGARH, February 6,
Punjab’s Finance, Excise and Taxation Minister Harpal Cheema today celebrated the remarkable success of the One Time Settlement of Outstanding Dues, 2025 (OTS-2025) scheme. Launched on October 1, 2025, the initiative has already facilitated the recovery of ₹110 crore while granting substantial financial relief to taxpayers and the trading community statewide.
In a press statement, Minister Cheema noted that the Taxation Department has processed 7,654 applications to date, leading to waivers totaling an impressive ₹38,477 crore. He attributed this strong uptake to the Bhagwant Mann-led Punjab Government’s focus on encouraging voluntary compliance rather than relying on extended legal battles.
Responding to feedback from industry groups, the government has extended the scheme’s deadline from December 31, 2025, to March 31, 2026. “This extension acknowledges the scheme’s positive momentum and addresses requests from associations,” Cheema explained. “It gives taxpayers more time to assess their dues and settle them through a clear, straightforward process.”
The minister reaffirmed the government’s dedication to improving the ease of doing business and fostering a supportive tax environment for traders. Key benefits under OTS-2025 include a full 100% waiver on interest and penalties across all categories, significantly lightening the load on businesses.
Additionally, the scheme offers tiered waivers on the principal tax amount:
- 50% waiver for demands up to ₹1 crore
- 25% waiver for demands between ₹1 crore and ₹25 crore
- 10% waiver for demands above ₹25 crore
Comparable graded relief applies to demands under Section 14-B of the Punjab General Sales Tax Act, 1948, and Section 51 of the Punjab VAT Act, 2005.
watch…..Punjab’s Water Security, Chandigarh and Punjab University: A Promise from CM Mann
Cheema appealed directly to traders and taxpayers: “I strongly encourage all eligible individuals and businesses to take advantage of this limited-time opportunity to clear past dues and support the state’s revenue efforts in a spirit of cooperation.”
He added a note of caution: “The government is committed to facilitation, but those who do not participate may face legal recovery actions to maintain equity and compliance across the system.”
All taxpayers—except government food grain agencies—are eligible to apply by submitting Form OTS-01 to their jurisdictional Assistant Commissioner of State Taxes (ACST).
