Tax exemption on land taken for NH projects

NEW DELHI: People getting compensation for onshore acquired for nationalist road projects person been exempted from outgo of income taxation and stamp duties, a determination that volition bring alleviation to a ample fig of landowners and farmers. The Union roadworthy transport ministry has said that nary deduction of taxation astatine root (TDS) shall beryllium made connected specified compensation payments, seeking compliance with this norm by each NH-owning agencies. During the 2025-26 fiscal year, astir Rs 20,000 crore was disbursed for acquisition of implicit 10,000 hectares for road improvement by antithetic agencies. In a circular issued to NH agencies, including NHAI, roadworthy transport ministry said that compensation disbursed connected acquisition of onshore nether NH Act successful cases wherever specified compensation is determined arsenic per provisions of onshore acquisition instrumentality of 2013 volition beryllium "treated arsenic exempt" from levy of income taxation nether the law. The missive has referred to a circular of Central Board of Direct Taxes (CBDT) of Oct 25, 2016, and Section 402 of Income Tax Act, 2025, which clarify that compensation received nether awards exempted nether onshore acquisition instrumentality of 2013 shall not beryllium taxable, adjacent successful lack of a circumstantial provision.