Maharashtra Govt Notifies ‘Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Amendment and Validation) Act, 2026’

The Government of Maharashtra has notified the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Amendment and Validation) Act, 2026 (Maharashtra Act No. II of 2026), which has been published in the Maharashtra Government Gazette (Extraordinary), vide Notification No. 14, dated March 10, 2026, after receiving the assent of the Hon’ble Governor. The amendment has been enacted with the objective of further strengthening and facilitating the implementation of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025.

As per the provisions of the Amendment Act, the timeline specified under Section 10 of the principal Act has been extended by substituting the earlier deadline of “31st December 2025” with “31st March 2026,” thereby granting additional time to taxpayers to avail the benefits of the settlement scheme. The amendment also introduces enabling provisions under Section 11 to address cases involving multiple appeals arising from the same statutory order. It allows applicants to withdraw appeals issue-wise for availing benefits under the scheme without affecting the continuation of other pending appeals.

Further, the Act provides clarity on the treatment of payments already made under the scheme. It stipulates that payments of tax, interest, penalty, or late fee made after 31st December 2025 and before the commencement of the Amendment Act shall be deemed valid and in accordance with the provisions of the law. In addition, the Act includes validation provisions to ensure that no legal proceedings or enforcement actions shall be initiated or continued for the refund of such amounts, thereby providing legal certainty and administrative stability.

The amendment is expected to significantly enhance taxpayer participation in the settlement scheme, reduce pending litigation, and improve revenue realization, while ensuring greater clarity, flexibility, and ease of compliance for stakeholders.

The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/03/Maharashtra-Settlement-of-Arrears-of-Tax-Interest-Penalty-or-Late-Fee-Amendment-and-Validation-Act-2026-March112026.pdf