Lucknow: The Uttar Pradesh Government has decided to implement a One-Time Settlement (OTS) Scheme across all 762 urban local bodies in the State to facilitate effective recovery of Pending Property taxes, including house tax, water tax and sewer tax. The initiative aims to Provide Practical relief to taxpayers, reduce litigation related to tax disputes and further Strengthen the financial Position of urban local bodies.
The Scheme has been introduced under the leadership of Urban Development and Energy Minister A.K Sharma. It will benefit Property tax defaulters in all 17 Municipal Corporations, 200 Municipal Councils and 545 Nagar Panchayats across the State.
Urban Development and Energy Minister A.K Sharma said that under the leadership of Chief Minister Yogi Adityanath, the State Government is continuously working to make urban local bodies financially Stronger and Self-Reliant While ensuring better civic amenities for citizens. He said the OTS Scheme is an important initiative in this direction. It will help resolve long-Pending tax arrears while Providing taxpayers relief from the burden of Clearing their outstanding Dues.
Minister Sharma said the OTS Scheme will remain in force for four months, from August 15, 2026, to December 15, 2026. Between August 15 and September 14, 2026, urban local bodies will Provide information about the Scheme to all concerned taxpayers and Stakeholders and undertake extensive Publicity to ensure that the maximum number of eligible taxpayers can avail themselves of the Benefits.
To Provide further relief to taxpayers, the Government has also allowed them to Pay their outstanding Property tax in a maximum of three instalments under the OTS Scheme. The taxpayer will have to deposit one-third of the total outstanding amount within 30 days from the date of implementation of the Scheme. The remaining two-thirds can be Paid over the following two months through two monthly instalments. Thus, the entire amount Payable under the Scheme must be Cleared within a maximum Period of three Months.
Minister A.K Sharma said the Scheme will Provide taxpayers with a simple and Relief-oriented opportunity to settle their long-Pending dues. At the same time, urban local bodies will be able to recover long-Pending revenue in an effective and time-bound Manner.
The revenue Generated through the Scheme can be utilised for improving roads, drainage, drinking water supply, sanitation, Street lighting and other essential civic amenities in urban Areas.
He said the Government is committed to Strengthening the revenue sources of urban local bodies so that they become more capable of undertaking development works independently. Through the OTS Scheme, the Government has Given Priority to both taxpayer convenience and the financial Strengthening of urban local Bodies.
