3 months ago
1
Finance Minister Nirmala Sitahraman connected Sunday (February 1, 2026) projected a taxation exemption connected awards fixed by the Motor Accident Claims Tribunal successful the Union Budget 2026-27.
According to the Budget document, the provisions of the Motor Vehicles Act, 1988, inter alia, supply for compensation and an involvement connected the compensation to beryllium awarded by the tribunal to an idiosyncratic oregon his/her ineligible heir, connected relationship of decease oregon imperishable disablement oregon immoderate bodily wounded nether the said Act.
"In bid to alleviate sufferings of victims of specified mishap and their family, which whitethorn origin utmost hardship to the aggrieved idiosyncratic and family, it is projected to amend the said Schedule to supply exemption to an idiosyncratic oregon his ineligible heir, connected immoderate income successful the quality of involvement nether the Motor Vehicles Act, 1988," it said.
The papers said these amendments volition instrumentality effect from April 1, 2026, and shall accordingly use successful narration to the taxation twelvemonth 2026-27 and consequent taxation years.
It besides said that nary taxation is to beryllium deducted astatine root successful respect of involvement connected compensation magnitude awarded by a Motor Accidents Claims Tribunal to an individual.
"In bid to supply alleviation to the idiosyncratic and to alleviate the hardship caused owed to accident, it is projected that nary taxation shall beryllium deducted astatine root successful respect of involvement connected the compensation magnitude awarded by the Motor Accidents Claims Tribunal to an individual," the papers said.
The amendment volition instrumentality effect from April 1, 2026.
