The Punjab government has extended its One-Time Settlement (OTS)-2025 scheme for pre-GST tax disputes by two months, till September 30, after nearly 9,800 taxpayers opted for the amnesty scheme, which has so far resulted in deposits of ₹167.23 crore and tax, interest, and penalty relief worth ₹534.54 crore.
The OTS scheme is aimed at resolving legacy pre-GST tax disputes, improving tax compliance, reducing long-pending litigation and enabling businesses to close old tax liabilities.
Announcing the extension on Friday, finance, excise and taxation minister Harpal Singh Cheema said the scheme had received 9,782 applications as of July 30, involving disputed tax demands of ₹437.51 crore. He said the extension would provide another opportunity to eligible taxpayers to settle pending disputes while availing statutory relief, including a full waiver of interest and penalties and slab-based relief on the principal tax amount.
The minister urged the remaining 9,386 eligible taxpayers to avail themselves of the scheme before the revised deadline, describing it as the final extension. He said no further relaxation would be granted after September 30.
At the same time, the government indicated that it would continue enforcement against habitual tax defaulters. Cheema said the excise and taxation department had recovered over ₹12.39 crore through attachment and recovery proceedings, with several defaulters opting for the OTS scheme after coercive action was initiated.
{{/usCountry}}At the same time, the government indicated that it would continue enforcement against habitual tax defaulters. Cheema said the excise and taxation department had recovered over ₹12.39 crore through attachment and recovery proceedings, with several defaulters opting for the OTS scheme after coercive action was initiated.
{{/usCountry}}The department has also scheduled 13 property auctions in August, targeting recovery of nearly ₹48.48 crore in outstanding tax dues. After the extended deadline, authorities will intensify recovery proceedings under the relevant tax laws and the Punjab Land Revenue Act, including attachment of bank accounts and auction of properties, the minister said.
Cheema also said the state was supporting the Supreme Court’s SAMADHAN initiative for settlement of tax disputes. According to the government, 12 major tax disputes have already been resolved amicably, while four more are expected to be settled shortly.