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 waived. The waiver will be 75% for dues between Rs 1 crore and Rs 5 crore, and 50% for dues exceeding Rs 5 crore. Eligible penalties will be waived completely across all four categories, subject to the scheme's conditions. The scheme covers demands and arrears under specified laws, including the UP Sales Tax Act, 1948, Central Sales Tax Act, 1956, UP Trade Tax Act, 1995, UP Entry Tax Act, 2007, and UP Value Added Tax Act, 2008, among other listed enactments. Both accepted and disputed tax demands are eligible for relief. Taxpayers whose cases are pending before courts will have to fulfil prescribed conditions, including submitting relevant documents and affidavits regarding the withdrawal of proceedings, wherever applicable. The government order clarifies that the penalty waiver applies only to penalties imposed for non-payment of outstanding dues. Other penalties are excluded from the scheme....