Lucknow, 11 July. The Uttar Pradesh government has taken a big step to make the urban bodies of the state economically strong and self-reliant. The government has decided to implement One Time Settlement Scheme (OTS) for recovery of pending property tax i.e. house tax, water tax and sewer tax in all 762 municipal bodies of the state. This scheme is expected to provide relief to lakhs of taxpayers stuck in property tax dues for a long time. Besides, recovery of old dues will also strengthen the financial position of the urban bodies.
OTS scheme will run from 15th August to 15th December
According to the government, the duration of the one-time settlement scheme has been fixed at four months. The scheme will be applicable from 15 August 2026 to 15 December 2026. Its benefit will be available to the eligible defaulters of pending property tax in 17 Municipal Corporations, 200 Municipal Councils and 545 Nagar Panchayats of the state. The objective of the government is to provide settlement of old tax dues in a simple and practical manner, reduce financial pressure on taxpayers and reduce tax related court disputes.
There will be wide publicity in the first month
from municipal bodies 15 August to 14 September 2026 Information about the scheme will be given to all concerned taxpayers and stakeholders by . Along with this, wide publicity will also be given about the scheme, so that more and more eligible taxpayers can take advantage of it.
Will be able to deposit the dues in three installments
While giving relief to the taxpayers, the government has given the facility to pay the outstanding property tax under OTS in a maximum of three installments. The taxpayer will have to deposit one-third of the total outstanding amount within 30 days from the date of implementation of the scheme. After this, the remaining two-thirds amount can be deposited through two monthly installments in the next two months. In this way, it will be mandatory to complete the payment of the entire amount payable under the scheme within a maximum of three months.
AK Sharma said – increasing the income of civic bodies is the priority of the government
Urban Development Minister Arvind Kumar Sharma Said that the state government is continuously working to make the urban bodies economically strong and self-reliant and to provide better urban facilities to the citizens. OTS scheme is an important initiative in this direction. He said that the scheme will resolve long pending tax dues and taxpayers will get an easy opportunity to settle old dues. Also, it will help the urban bodies in effective and timely recovery of pending revenue.
Revenue will be spent on facilities like roads, water and sanitation
Minister AK Sharma said that the revenue received from the tax can be used to improve roads, drainage, drinking water, sanitation, lighting and other essential public facilities in the cities. He said that the aim of the government is to strengthen the sources of income of the urban bodies, so that they can become more capable for their development work. Through the OTS scheme, on one hand the government has taken care of the convenience of the taxpayers, while on the other hand it has also given priority to the financial strengthening of the urban bodies.