The Uttar Pradesh Interest Waiver Scheme-2026 covers eligible arrears accumulated up to 31 December 2025 under several legacy tax laws.
The Uttar Pradesh cabinet has approved a three-month tax amnesty designed to help businesses and other taxpayers clear long-running arrears without facing interest charges or penalties, in a move the state says is aimed at closing old disputes and improving compliance.
According to local reports, the Uttar Pradesh Interest Waiver Scheme-2026 will apply to outstanding dues that accumulated up to December 31, 2025. The relief covers a series of legacy tax laws, including the Uttar Pradesh Sales Tax Act, 1948; the Central Sales Tax Act, 1956; the Uttar Pradesh Entertainment and Betting Tax Act, 1979; the Uttar Pradesh Trade Tax Act, 1995; the Uttar Pradesh Entry Tax Act, 2007; and the Uttar Pradesh Value Added Tax Act, 2008. It also extends to cases linked to entertainment tax rules and the Uttar Pradesh Cable Television Network Rules, 1997.
Finance and Parliamentary Affairs Minister Suresh Kumar Khanna said the scheme was intended to remove interest and penalty burdens attached to old dues and give taxpayers with pending liabilities a chance to settle them. The government is positioning the measure as both a relief package and a mechanism to reduce the stock of unresolved tax cases that have remained open under earlier regimes.
The approval came during a cabinet meeting chaired by Chief Minister Yogi Adityanath, which also cleared a wider slate of decisions on state policy and infrastructure, according to Indian media reports. Those reports said the meeting approved more than 30 proposals, including measures affecting household welfare, transport and skills training, underscoring the administration’s effort to present a broad programme of economic and administrative announcements alongside the tax relief plan.
For taxpayers, the practical effect will depend on how quickly the state issues the detailed implementation rules and what process it sets for making use of the waiver. But the core message from the government is clear: for a limited window, those with eligible pre-2026 liabilities under the covered laws will be able to settle their dues without the added cost of accrued interest and penalties.
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