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), published in the Maharashtra Government Gazette (Extraordinary) on 10 March 2026 after receiving the assent of the Governor. The amendment has been introduced to further strengthen the implementation of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025 and to facilitate greater participation in the settlement scheme. The Act extends the timeline under Section 10 of the principal Act by replacing the earlier deadline of 31 December 2025 with 31 March 2026, thereby providing taxpayers additional time to settle pending tax arrears. It also amends Section 11 to address situations where multiple appeals arise from the same statutory order, allowing applicants to withdraw appeals issue-wise to avail benefits under the scheme without affecting the continuation of other appeals. Further, the amendment clarifies the treatment of payments already made by providing that amounts paid towards tax, interest, penalty, or late fee after 31 December 2025 and before the commencement of the Amendment Act shall be deemed valid and adjusted appropriately against liabilities. The Act also contains validation provisions ensuring that such payments cannot be challenged or claimed as refunds through legal proceedings. The amendment is expected to encourage settlement of disputes, reduce litigation, and improve revenue collection while providing greater clarity and flexibility to taxpayers.
Maharashtra Government Gazette
Extraordinary Part VIII
Monday, March 10, 2026 / Phalguna 19, Shaka 1947
Extraordinary No. 14
Authorized Publication
In pursuance of clause (3) of article 348 of the Constitution of India, the following translation in English of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Amendment and Validation) Act, 2026 (Mah. Act No. II of 2026), is hereby published under the authority of the Governor.
By order and in the name of the Governor of Maharashtra,
SATISH WAGHOLE,
Secretary (Legislation) to Government,
Law and Judiciary Department.
MAHARASHTRA ACT No. II OF 2026.
(First published, after having received the assent of the Governor in the
“Maharashtra Government Gazette”, on the 10th March 2026).
An Act further to amend the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025.
WHEREAS it is expedient further to amend the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025, for the purposes hereinafter appearing ; it is hereby enacted in the Seventy-seventh Year of the Republic of India as follows :-
1. This Act may be called the Maharashtra Settlement of Arrears of Tax, Short title. Interest, Penalty or Late Fee (Amendment and Validation) Act, 2026.
2. Amendment of section 10
In section 10 of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025 (hereinafter referred to as “the principal Act”), in the Table, in column (4), for the figures, letters and word “31st December 2025” the figures, letters and word “31st March 2026” shall be substituted.
3. Amendment of section 11
In section 11 of the principal Act, after sub-section (1), the following provisos shall be added, namely:—
“Provided that, where more than one appeal is filed in respect of the same statutory order and such appeals involve distinct and severable issues, the applicant may, for the purpose of availing the benefit under this Act, fully and unconditionally withdraw the appeal relating to such distinct and severable issues, without affecting the continuance of the remaining appeal or appeals:
Provided further that, where any payment of requisite amount has been made in respect of a statutory order, whether in appeal or otherwise, on or before the date of commencement of this Act and,—
a. where such payment is identifiable issue-wise, it shall be adjusted against the liability relating to the corresponding issue or issues;
b. where such payment is not identifiable issue-wise, it shall be adjusted proportionately against the liability arising out of the appeal or appeals withdrawn under this section and the appeal or appeals which continue to remain pending, in such manner as may be determined by the designated authority.”.
4. Validation.
Notwithstanding anything contained in the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025 (hereinafter referred to as “the said Act”) or in any judgement, decree or order of any court, any payment of requisite amount of tax, interest, penalty or late fee under the relevant Act as defined under the said Act, paid and collected under the said Act from any applicant, after the 31st December 2025 and till the date of commencement of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Amendment and Validation) Act, 2026, shall be deemed to be and shall be deemed always to have been duly and validly paid and collected in accordance with law as if the provisions of the said Act, as amended by this Act, had been continuously in force at all material times and accordingly,—
a. no suit or proceedings shall be maintained or continued in or before any court or any authority for the refund of any amount received or realised by way of requisite amount;
b. no court or any other authority shall enforce any decree or order directing the refund of any amount received or realised by way of such requisite amount.
