Punjab's OTS-2025 Scheme Yields Rs 110 Crore Recovery with Extended Deadline
In a significant boost to state revenue and trader relief, Punjab's One-Time Settlement of Outstanding Dues (OTS-2025) scheme has successfully recovered Rs 110 crore while providing substantial financial waivers to the trading community. State Finance Minister Harpal Singh Cheema announced these results on Friday, highlighting the scheme's role in fostering voluntary compliance over prolonged litigation.
Scheme Details and Application Surge
Launched on October 1, 2025, the OTS-2025 has garnered 7,654 applications to date, leading to the granting of waivers totaling an impressive Rs 38,477 crore. This initiative is designed to streamline tax settlements and reduce the administrative burden on both taxpayers and the government.
Deadline Extension to March 2026
In response to positive momentum and requests from industry associations, the deadline for availing the scheme has been extended from December 31, 2025, to March 31, 2026. Cheema emphasized that this extension offers eligible taxpayers ample time to assess their liabilities and opt for settlement in a transparent and simplified manner, thereby enhancing participation.
Comprehensive Waiver Structure
The OTS-2025 provides a complete 100% waiver of interest and penalty across all categories, significantly easing financial pressures on businesses. Additionally, it includes substantial slab-wise waivers on primary tax:
- 50% waiver for tax demands up to Rs 1 crore.
- 25% waiver for demands between Rs 1 crore and Rs 25 crore.
- 10% waiver for demands exceeding Rs 25 crore.
Eligibility and Application Process
All taxpayers, except government food grain agencies, are eligible to apply under the scheme. Interested parties must submit Form OTS-01 at the office of their jurisdictional Assistant Commissioner of State Taxes (ACST). Cheema urged traders and taxpayers to take advantage of this opportunity to regularize past dues and contribute to the state's revenue in a cooperative spirit.
Enforcement and Compliance
While encouraging voluntary participation, Cheema noted that cases where the scheme is not availed may face legal action to ensure fairness and discipline within the taxation system. This balanced approach aims to support compliant businesses while maintaining regulatory integrity.
The OTS-2025 scheme represents a proactive step by the Punjab government to enhance tax compliance, provide financial relief, and strengthen state revenues through a collaborative framework.
