Punjab Govt Extends One-Time Settlement Scheme Due Date Until March 31, 2026:

Punjab Govt Extends One-Time Settlement Scheme Due Date Until March 31, 2026 In an effort to offer significant relief to the trading community and state industry, the Government of Punjab has recently announced the extension of its One-Time Settlement Scheme for the recovery of outstanding dues until March 31, 2026. The approval for this extension was Minister of Finance of Punjab, Harpal Singh Cheema. As per the order issued by the Government of Punjab, "the Governor of Punjab is pleased to extend the last date of filing of application under The Punjab One Time Settlement Scheme for Recovery of Outstanding Dues, 2025 to 31.03.2026."

Also Read

Big Relief! MCA Extends Annual Filing Due Date for FY 2024-25 Without Late Fees till Jan 31, 2026

This decision comes after many stakeholders and associations submitted representations to the government requesting the extension of the one-time settlement scheme. During the final months of 2025, there were various tax deadlines that clashed with each other, which affected the timely and accurate compliance by the taxpayers. Additionally, many businesses faced difficulties in determining their exact tax dues because VAT assessment orders were pending, making it hard to meet the original December deadline. As per the Punjab Finance Minister, around 6,348 applications had been received under the One Time Settlement Scheme, which shows greater participation of the taxpayers. Introduced on October 1, the One Time Settlement aims at providing relief to the taxpayers by resolving pending tax liabilities, including VAT and central sales tax. The scheme offers significant relief, including waivers of interest and penalties and a reduction in the principal tax amount, helping businesses clear their arrears and resolve any long-term pending tax disputes.

Also Read

CBI Court Convicts Central Excise and Service tax Inspector in Disproportionate Assets Case

The taxpayers can get a 100% waiver on the interest and penalty, and a 50% waiver on the principal tax amount if the tax demand is up to Rs 1 Crore. If the demand is between Rs 1 crore and Rs 25 crore, taxpayers can get a 100% waiver on interest and penalty and a 25% waiver on the tax amount. If demand exceeds Rs 25 crore, taxpayers can get a 100% waiver on interest and penalty and a 10% waiver on the tax amount.