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In this paper, we derive a novel, low-complexity, joint peak-average-power-ratio (PAPR) reduction and demodulation technique for orthogonal frequency division multiplexing (OFDM) systems. The method exploits the properties of the discrete Fourier transform (DFT) matrix to reconstruct the thresholded samples at the receiver. The signal processing required at the transmitter side is very low. The technique gives an impressive reduction in PAPR value with good bit error rate (BER) performance compared to existing methods and also incorporates an efficient demodulation scheme for OFDM. We have also developed a new time-domain method for transmitting side information implicitly along with the transmitted data. Performance advantages of the proposed method are substantiated through extensive computer simulation studies and are compared with that of well-known prevailing methods.