LUCKNOW, Oct. 20 -- The Uttar Pradesh government has introduced the Interest Waiver Scheme-2026, offering traders and other eligible taxpayers a waiver of interest and penalties on outstanding tax dues, with relief ranging from 50% to 100% depending on the principal amount owed.

Notified through a government order on October 16, the scheme covers arrears up to December 31, 2025. It will be implemented across all 75 districts for three months from the date of issuance of the order.

Under the scheme, taxpayers with principal dues of up to Rs.10 lakh will receive a 100% waiver of interest and eligible penalties upon depositing the entire principal amount.

For principal dues between Rs.10 lakh and Rs.1 crore, 90% of the interest will be wa...