States » NorthPosted at: Oct 20 2026 6:47PM


Haryana extends tax settlement scheme till Nov 30; small traders get full waiver on dues up to Rs 1 lakh, 100 pc interest & penalty relief

Jhajjar, Oct 20 (UNI) In a major relief to traders and businesses burdened by legacy tax liabilities, the Haryana government has extended its One-Time Settlement Scheme, 2026, until November 30, offering complete waiver of eligible tax dues up to Rs 1 lakh, substantial concessions on higher outstanding amounts and full relief from interest and penalties.
Deputy Commissioner Varsha Khangwal said the deadline had been extended following an encouraging response from the business community, giving traders another opportunity to settle long-pending tax liabilities under seven taxation laws.
The scheme, launched on June 1, 2026, is aimed at clearing legacy tax arrears and allowing businesses to operate without the burden of unresolved liabilities from earlier taxation regimes.
Significantly, taxpayers with outstanding tax dues of up to Rs 1 lakh under a particular Act for a particular year are not required to submit an application. The entire tax liability, along with interest and penalties, will be waived for that year under the relevant Act, the Deputy Commissioner said.
The relief is particularly significant for small traders, shopkeepers and business establishments facing relatively modest outstanding tax demands.
Khangwal said the initiative would help reduce legacy tax arrears and allow greater administrative attention to be devoted to GST collection and compliance.
Deputy Excise and Taxation Commissioner (Sales) Ajay Kumar said the scheme also provides substantial concessions for businesses facing larger outstanding tax demands.
Under the erstwhile Haryana General Sales Tax Act, 1973, taxpayers with outstanding tax dues exceeding Rs 1 lakh will receive a 70 per cent concession. The law was repealed following the introduction of the Haryana Value Added Tax Act, 2003, on April 1, 2003.
For outstanding liabilities under other covered taxation laws, the scheme provides graded concessions depending on the amount of tax due.
Tax demands up to Rs 1 lakh qualify for a 100 per cent waiver, while the relief is 60 per cent for the Rs 1 lakh–Rs 10 lakh slab, 50 per cent for Rs 10 lakh–Rs 1 crore, 40 per cent for Rs 1 crore–Rs 10 crore, 35 per cent for Rs 10 crore–Rs 30 crore and 30 per cent for Rs 30 crore–Rs 60 crore.
No concession is specified for the portion exceeding Rs 60 crore.
Kumar clarified that taxpayers would receive the full benefit of concessions applicable to preceding slabs, making the relief progressive rather than applying a single rate to the entire outstanding amount.
The scheme also addresses long-pending tax demands arising from the non-submission of statutory documents, including Forms C, F, H, E1 and E2, tax invoices, VAT C-4 and VAT D1 and D2.
Kumar said taxpayers who are now able to furnish the required documents could have their outstanding tax demands reduced by the amount of relief admissible against those forms, provided the documents are verified within three months.
The facility applies to liabilities under the Haryana Value Added Tax Act, 2003, and the Central Sales Tax Act, 1956.
However, the benefit will not be available to fictitious or bogus firms against which criminal proceedings have been initiated. It will also not apply to statutory forms previously rejected by the competent authorities.
To ease the financial burden on traders, the government has also provided an installment facility for settlement payments.
For settlement amounts up to Rs 5 lakh, the payment must be made in a single installment.
Where the settlement amount exceeds Rs 5 lakh but does not exceed Rs 25 lakh, payment can be made in two equal installments. The first is payable when the application is submitted and the second within 60 days of the interim order.
For settlement amounts exceeding Rs 25 lakh, three installments are permitted. The applicant must pay 40 per cent at the time of application, another 30 per cent within 60 days of the interim order and the remaining 30 per cent within 120 days.
The scheme also allows taxpayers involved in appeals or litigation against outstanding tax demands to seek settlement, subject to withdrawal of the pending appeal or legal proceedings.
Kumar said that once a settlement application is found valid and accepted, no further proceedings will be initiated against the applicant in respect of the settled liabilities.
The Deputy Commissioner urged eligible traders and business establishments to take advantage of the extended deadline and resolve outstanding tax disputes before November 30.
UNI KK ATP
Tags: #Haryana extends tax settlement scheme till Nov 30; small traders get full waiver on dues up to Rs 1 lakh# 100 pc interest & penalty relief
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