Property tax defaulters in Uttar Pradesh get settlement opportunity
Lucknow, August 10: To effectively recover pending property taxes (house tax, water tax, and sewer tax) in Uttar Pradesh’s urban bodies, provide practical relief to taxpayers, reduce court disputes, and further strengthen the financial position of urban bodies, the state government has decided to implement a one-time settlement scheme in all 762 urban bodies in the state.
Under the scheme, pending property tax defaulters in the state’s 17 municipal corporations, 200 municipal councils, and 545 nagar panchayats will benefit.
Urban Development and Energy Minister A.K. Sharma said on Monday that the state government is continuously working to make urban bodies economically strong and self-reliant, as well as to provide better urban amenities to the common citizens. The one-time settlement scheme is an important initiative in this direction. This will resolve long-pending tax arrears and provide relief to taxpayers from the financial burden.
He stated that the One-Time Settlement Scheme has been set for four months and will be implemented from August 15, 2026, to December 15, 2026. Between August 15 and September 14, 2026, municipal bodies will ensure extensive publicity, providing information about the scheme to all relevant taxpayers and stakeholders, so that as many eligible taxpayers as possible can benefit from the scheme.
To provide relief to taxpayers, the government has also provided a maximum of three installments for payment of outstanding property taxes under the One-Time Settlement Scheme. Taxpayers must deposit one-third of the total outstanding amount within 30 days from the date of implementation of the scheme, and the remaining two-thirds in two monthly installments over the next two months. Thus, the entire amount payable under the scheme must be paid within a maximum period of three months.
The Urban Development and Energy Minister stated that this scheme will provide taxpayers with a simple and convenient opportunity to settle their past dues. It will also enable urban bodies to effectively and timely recover long-pending revenue. This revenue can be used to improve roads, drainage, drinking water, sanitation, lighting, and other essential public amenities in cities. He stated that the government is striving to strengthen the income sources of urban bodies and make them more capable of carrying out their development work. Through the OTS scheme, the government has prioritized both taxpayer convenience and the financial strengthening of urban bodies.
