Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
The Uttar Pradesh government has introduced a four-month One-Time Settlement (OTS) scheme to help property owners clear pending house tax, water tax and sewerage tax dues without paying interest or surcharge. The scheme will be implemented across all 762 urban local bodies, covering 17 municipal corporations, 200 municipal councils and 545 nagar panchayats. It will cover outstanding dues up to April 1, 2026, for residential, commercial and mixed-use properties, with taxpayers allowed to pay the principal amount in up to three instalments.
The Uttar Pradesh government has introduced a four-month One-Time Settlement (OTS) scheme to help property owners clear long-pending municipal tax dues while enabling urban local bodies to recover accumulated revenue.
The scheme will be implemented across all 762 urban local bodies in the state, comprising 17 municipal corporations, 200 municipal councils and 545 nagar panchayats. It will cover outstanding house tax, water tax and sewerage tax dues up to April 1, 2026. The settlement is available for residential, commercial and mixed-use properties, as well as properties belonging to government departments, autonomous bodies and public sector organisations.
The OTS window will remain open for four months, beginning August 15 and continuing until December 15, 2026. Under the scheme, eligible taxpayers will need to pay only the outstanding principal amount, while the accumulated interest and surcharge will be completely waived if the dues are settled within the prescribed period.
To make payment easier for defaulters, the government has allowed the principal amount to be cleared in up to three instalments. Taxpayers opting for the facility must deposit one-third of their outstanding dues within the first 30 days. The remaining amount can be paid through two further monthly instalments, but the entire principal has to be cleared within three months of applying for the scheme.
The initiative is intended to provide relief to property owners who have accumulated substantial tax liabilities because of interest and additional charges. At the same time, the government expects the settlement mechanism to improve the financial position of urban local bodies by converting long-pending arrears into recoverable revenue.
According to officials, the OTS drive is expected to generate more than 1,500 crore for urban local bodies. Property tax and related municipal revenues form an important source of funding for civic services, including roads, drainage, drinking water, sanitation and street lighting.
Urban Development Minister Arvind Kumar Sharma said municipal bodies have been instructed to establish help desks to guide applicants and address queries received through online portals as well as physical submissions. Officials have also been directed to conduct awareness campaigns so that eligible taxpayers are informed about the settlement opportunity.
The government has outlined an extensive outreach programme from August 15 to September 14, using SMS alerts, emails, letters, newspaper advertisements, electronic media, hoardings and public camps to inform property owners about the scheme. Applications can be submitted until November 14, while civic bodies have been instructed to process and settle cases by December 15. Authorities have also been directed to dispose of applications within 15 days.
The scheme is also intended to improve tax compliance and reduce the volume of long-standing municipal tax disputes. By offering a waiver of interest and surcharge, the government is seeking to encourage defaulters to regularise their accounts instead of allowing arrears to continue accumulating.
Officials have described the OTS as a one-time opportunity. Once the scheme ends, strict recovery proceedings are expected to begin against eligible defaulters who do not take advantage of the settlement facility. Municipal officials have also been warned that delays in processing applications or implementing the scheme within the prescribed timelines could lead to accountability and disciplinary action.
For property owners across Uttar Pradesh, the scheme provides a defined window to settle old municipal liabilities at the principal amount, while for urban local bodies it offers an opportunity to strengthen revenue collections and improve their capacity to fund essential civic infrastructure.
Advertisement
Facebook
Whatsapp
