Photo Source: Babushahi Bureau
Punjab recovers Rs 110 crore under OTS-2025, over 7,600 applications received
Babushahi Bureau
Chandigarh, February 6, 2026: Punjab Finance, Excise and Taxation Minister Harpal Singh Cheema on Friday highlighted the strong performance of the One Time Settlement of Outstanding Dues, 2025 (OTS-2025), stating that the scheme has already facilitated the recovery of ₹110 crore while providing substantial financial relief to traders across the state.
In a press communiqué, the Minister informed that the Taxation Department has received 7,654 applications since the launch of OTS-2025 on October 1, 2025, resulting in waivers amounting to ₹38,477 crore.
He said the overwhelming response reflects the success of the Chief Minister Bhagwant Mann-led Punjab Government’s policy of encouraging voluntary compliance over prolonged litigation.
Highlighting the government’s responsiveness to industry feedback, Cheema said the deadline for availing the scheme has been extended from December 31, 2025, to March 31, 2026.
The extension, he added, was granted in view of the scheme’s positive momentum and representations received from industry associations, allowing taxpayers additional time to assess their liabilities and opt for settlement in a transparent and simplified manner.
Reiterating the state government’s commitment to ease of doing business and a trader-friendly tax environment, the Finance Minister said that OTS-2025 offers a 100 per cent waiver of interest and penalty across all categories, significantly easing the financial burden on businesses.
He further explained that the scheme provides slab-wise relief on the principal tax amount, including a 50 per cent waiver for demands up to ₹1 crore, 25 per cent waiver for demands between ₹1 crore and ₹25 crore, and a 10 per cent waiver for demands exceeding ₹25 crore. Similar graded relief, he added, is available for demands under Section 14-B of the Punjab General Sales Tax Act, 1948, and Section 51 of the Punjab VAT Act, 2005.
Appealing to traders and taxpayers to avail the benefits, Cheema urged eligible applicants to utilise the one-time opportunity to regularise past dues and contribute to the state’s revenue in a cooperative spirit.
He clarified that while the government remains facilitative, cases not opting for the scheme may face action as per law to maintain fairness and discipline in the system.
The Minister further stated that all taxpayers, except government food grain agencies, are eligible to apply under the scheme by submitting Form OTS-01 at the office of the jurisdictional Assistant Commissioner of State Taxes (ACST).