Varanasi Property Owners Get Tax Relief as 276 Defaulters Pay ₹39 Lakh Under OTS

Varanasi, August 22, 2026: Property tax defaulters in Varanasi are responding to the municipal corporation's One-Time Settlement (OTS) scheme, with 276 property owners paying ₹39.36 lakh in property tax within the first three days of the initiative.

The settlement scheme offers significant relief by waiving interest and surcharge for eligible taxpayers who clear their principal dues, while smaller taxpayers can also use an instalment facility.

₹7.18 Lakh Interest and Surcharge Waived

Under the OTS scheme launched by the Varanasi Municipal Corporation, taxpayers have already received a combined waiver of ₹7.18 lakh on interest and surcharge.

Municipal commissioner Himanshu Nagpal said the entire interest and surcharge will be waived when the outstanding principal amount is paid in a lump sum.

The scheme covers defaulters of property tax, water tax and sewer tax.

OTS Scheme Open Until December 15

The tax settlement scheme started on August 15, 2026, and will remain open until December 15, 2026.

This gives property owners with pending municipal dues several months to review their outstanding amounts and take advantage of the waiver.

 

Taxpayers With Dues Up to ₹1 Lakh Can Pay in Instalments

The corporation has also introduced an instalment facility for small and medium taxpayers.

Property tax defaulters with outstanding dues of up to ₹1 lakh can pay:

• One-third of the outstanding amount within the first 30 days
• The remaining two-thirds in two equal monthly instalments

The facility could make it easier for property owners who cannot clear their entire principal amount in a single payment.

Why This Matters for Property Owners

For property owners with long-pending municipal dues, the biggest advantage of the scheme is the opportunity to reduce the additional financial burden created by accumulated interest and surcharge.

Those who can pay the principal amount in full can avail themselves of the complete waiver on these additional charges, while eligible smaller taxpayers can spread their payments over three instalments.

 

Grihik Angle

For Varanasi property owners with pending municipal taxes, the OTS scheme could be a useful opportunity to clear old dues at a lower overall cost.

The early response — ₹39.36 lakh collected from 276 property owners in just three days — shows that taxpayers are already taking advantage of the relief.

Owners with outstanding property, water or sewer tax should check their dues and eligibility rather than allowing penalties and additional charges to accumulate further.