Bhagwant Mann: Punjab Government Extends Relief for Property Tax Defaulters Till August 15

In a major relief for property owners, the Punjab Government has extended the deadline for its one-time settlement scheme related to outstanding property taxes. Residents now have time till August 15, 2025, to pay their pending property tax without incurring any penalties or interest.

Earlier, the government had waived 18% interest and 20% penalty for those who paid their dues by July 31, 2025. With the deadline now extended, defaulters get an additional two weeks to clear their dues under the same benefit.

Key Highlights of the Scheme:

Property owners who clear all pending tax dues by August 15 will be exempted from paying 18% interest and 20% penalty.

Those who have incorrectly paid property tax will also get 100% waiver on penalties if the issue is resolved by the new deadline.

This decision applies to all municipal corporations, municipal councils, and nagar panchayats across Punjab.

The official notification was issued by Additional Chief Secretary Tejveer Singh, IAS, of the Department of Local Government, Punjab, with the approval of the competent authority.

Objective: Encourage Compliance and Ease Burden

The initiative aims to encourage more citizens to regularize their property tax payments, reduce litigation, and support municipal finances without burdening the public with interest and penalties.

Municipal bodies and officials across the state have been directed to ensure that this extended window is well-publicized and the benefit reaches all eligible property owners.

This move is expected to generate significant revenue for the state while offering relief to thousands of property owners struggling with backdated dues. 

The official directive was issued via notification number 02/07/2012-4LG3 (P.F) ILG3/12-21, dated August 1, 2025, and signed by Additional Chief Secretary Tejveer Singh, IAS. The notification confirms that the extension has been approved by the competent authority and is to be implemented with immediate effect.

Revenue Generation and Public Support

This move is expected to bring in substantial revenue for urban local bodies, which often rely on property taxes for basic civic services and infrastructure development. At the same time, it builds trust with the public by reducing financial strain on households and businesses, especially those affected by economic downturns or administrative issues.