A 3-month window: Settle old tax disputes under the UP government’s new scheme
A 3-month window: Settle old tax disputes under the UP government’s new scheme
If you have outstanding tax dues dating back to December 31, 2025, that have accrued penalties and interest, the UP government has approved the ‘Interest and Penalty Waiver Scheme 2026’ for such defaulters.
If you are from Uttar Pradesh and have outstanding tax dues, this information is particularly relevant for you. The UP government has approved a significant scheme to provide relief to such defaulters regarding old tax arrears.
Specifically, the UP government has approved the ‘Interest and Penalty Waiver Scheme 2026’ to offer relief to old tax defaulters. Under this scheme, relief will be provided regarding the penalties and interest levied on outstanding taxes. This raises the question: for how far back will relief on outstanding taxes be granted?
A 3-month window provided
The scheme was approved on Friday, paving the way for relief on outstanding tax dues dating up to December 31, 2025. A three-month window has been provided to avail the benefits of this scheme. It is important to note that the scheme includes provisions to waive penalties and interest accrued on outstanding taxes up to December 31, 2025. Consequently, some might mistakenly believe that the entire tax amount will be waived, but that is not the case.
Who will benefit?
The most crucial question is: who exactly will benefit from this scheme?
It applies to individuals with outstanding tax dues in UP. This includes old sales tax, trade tax, entry tax, and other taxes owed by business owners and shopkeepers. If penalties or interest have been levied on these taxes, relief may be obtained in accordance with the scheme’s rules.
Will the entire tax amount not be waived?
The answer is no. This scheme does not imply that the outstanding tax itself does not need to be paid; rather, the relief offered applies to the penalty and interest levied on the outstanding tax. In other words, while the principal outstanding tax must be paid, relief is available regarding the associated penalties and interest.
Understand the complete process of the scheme
To avail of this, visit the official website of the Uttar Pradesh Commercial Tax Department.
Click on the ‘Interest Waiver Scheme 2026’ link active on the portal.
Enter your registration number.
The system will display the outstanding tax amount along with the applicable penalty and interest.
Provide your consent in the form to avail the benefits of the scheme.
Make the payment for the principal tax amount online.
Remember to download your settlement receipt and ‘No-Dues Certificate’ after making the payment.
The process can also be completed offline
If you encounter any issues with the online method, you can complete the process offline. You may visit the official at your respective Commercial Tax office to carry out the entire procedure.
