- By Kamakshi Bishnoi
- Mon, 20 Jul 2026 11:14 PM (IST)
- Source:JND
- 100% interest and penalty waiver on principal payment.
- Scheme covers house, water, sewer tax across UP.
- Pay in up to three installments by December 15.
The Uttar Pradesh government has announced a one-time settlement (OTS) scheme to provide major relief to property tax defaulters across the state. Under the scheme, taxpayers who clear their outstanding principal amount will receive a complete waiver of interest and penalty charges on pending house tax, water tax and sewer tax dues.
The scheme, to be launched for the first time, would be applied in all 762 urban local bodies of the State comprising 17 municipal corporations, 200 municipal councils and 545 nagar panchayats. The initiative will boost the tax recovery besides providing much-awaited relief to the people.
Principal Secretary of the Urban Development Department P Guru Prasad has issued necessary directions in this regard to all the Municipal Commissioners and Executive Officers of the Municipal Councils and Nagar Panchayats. The scheme will be implemented in accordance with the provisions of the Uttar Pradesh Municipal Corporation Act, 1959, and Uttar Pradesh Municipalities Act, 1916.
Full Waiver On Interest And Penalties
Under the OTS scheme, defaulters would have to pay only the remaining principal portion of property tax, and once the full principal has been paid, there would be a waiver of 100 per cent interest and surcharge. This facility can be used for all overdue property tax until April 1, 2026.
The scheme will cover residential, commercial and mixed-use properties, and will be available to individual taxpayers as well as government departments, autonomous bodies and public sector undertakings.
Payment Allowed In Three Instalments
To make repayment easier, the government has allowed taxpayers to pay the principal amount in up to three instalments.
Beneficiaries will have to deposit at least one-third of the outstanding principal within 30 days of enrolling under the scheme. The remaining amount can be paid in two equal monthly instalments, with the entire payment to be completed within three months.
Scheme To Run From August 15
The OTS scheme will remain open from August 15 to December 15. During the first month, from August 15 to September 14, urban local bodies will conduct awareness campaigns and inform eligible taxpayers about the scheme.
Online And Offline Applications
Applications can be submitted through both online and offline modes. Municipal bodies will accept applications through their official websites or designated portals, while help desks will also be established to assist applicants. Authorities have been instructed to dispose of all applications within 15 days.
The state government has directed urban local bodies to publicise the scheme extensively through SMS, emails, letters, billboards, awareness camps, seminars and electronic media.
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No Refund For Earlier Payments
The government has clarified that taxpayers who had already paid their dues, either partially or in full, before the launch of the OTS scheme will not be eligible for any refund.
Officials have also been warned that delays in processing applications or failure to implement the scheme effectively will invite accountability. The Urban Development Department will monitor the programme through weekly and fortnightly reviews, while strict recovery action will be taken against defaulters who fail to take advantage of the scheme.