UP announces one-time municipal tax settlement with full waiver

UP government launches four-month one-time settlement (OTS) scheme from August 15 to December 15, 2026, for pending house tax, water tax, and sewer tax dues.

The scheme waives all interest and surcharge on dues outstanding up to April 1, 2026, applicable across 762 urban local bodies including 17 municipal corporations, 200 municipal councils, and 545 nagar panchayats.

Taxpayers pay only the principal amount, which can be cleared in up to three instalments: one-third within 30 days of approval, the rest in two monthly instalments, all within three months.

The scheme covers residential, commercial, mixed-use properties, as well as government, autonomous body, and public sector properties.

Officials expect the drive to generate over ₹1,500 crore in revenue and improve financial health of urban local bodies, tax compliance, and reduce property tax disputes.