04-February-2026
Taxation
 
No tax on compensation received from govt on acquisition of land
03-Feb-2026

Is govt eyeing your land? Worried about paying tax on compensation you'll receive? Not anymore. The Budget 2026 has brought an important amendment exempting compensation received on compulsory acquisition of land under Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (RFCTLARR Act). The proposal says the relief will be applicable to individuals and HUFs. With govt pushing for Infrastructure development sin urban areas such as metro train networks, industrial corridors and the like, land acquisition is on a rise. The proposal is expected to help landowners. However, this relief will not apply to acquisitions by private players or through mixed structures.

News Source:- https://timesofindia.indiatimes.com/business/india-business/no-tax-on-compensation-received-from-govt-on-acquisition-of-land/articleshow/127874119.cms