NEW DELHI: People getting compensation for land acquired for national highway projects have been exempted from payment of income tax and stamp duties, a move that will bring relief to a large number of landowners and farmers. The Union road transport ministry has said that no deduction of tax at source (TDS) shall be made on such compensation payments, seeking compliance with this norm by all NH-owning agencies. During the 2025-26 financial year, around Rs 20,000 crore was disbursed for acquisition of over 10,000 hectares for highway development by different agencies. In a circular issued to NH agencies, including NHAI, road transport ministry said that compensation disbursed on acquisition of land under NH Act in cases where such compensation is determined as per provisions of land acquisition law of 2013 will be “treated as exempt” from levy of income tax under the law. The letter 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 under awards exempted under land acquisition law of 2013 shall not be taxable, even in absence of a specific provision.End of ArticleFollow Us On Social MediaVideosVikram Misri Holds Key Talks With French FM, Discusses West Asia Conflict, Bilateral TiesMEA Responds As 15 Indian Ships Remain Stranded Amid Trump’s Hormuz BlockadeUS Naval Blockade on Iran: Why Strait of Hormuz Tensions Could Hit India’s Oil, LPG and InflationTCS Nashik In Eye Of Storm As Women Allege Harassment, Conversion Pressure At Workplace’We Have Common Fate’: Iran Envoy Thanks ‘Friend’ India, Responds On Hormuz Toll RowSupreme Court Refuses To Quash CBI Case Against Lalu Yadav In Land-For-Jobs Scam, Trial To ContinueNoida Protests Explained: Pay Gap Rising Costs And Labour Issues Behind The ViolenceTrust Deficit Grows In Ladakh As Activist Sonam Wangchuk Flags Delay In Talks With CentrePatna Posters Push Nishant Kumar As Next Chief Minister Of BiharDelhi To Dehradun In 2.5 Hours? PM To Flag Off India’s New Expressway That Opens New Era Of Speed123Photostories8 elegant baby girl names inspired by rare flowers you have probably never heard of10 scientific breakthroughs that rewrote the rules of warPoila Boishakh 2026: 9 traditional Bengali dishes served on New YearDelhi-Dehradun Expressway: Travel From Delhi To Dehradun In Just 2.5 Hours! Check Top Facts & PhotosFrom Brad Pitt to Baby Dakota Fanning: 7 actors you totally forgot were on ‘Friends’TV’s 6 female protagonists who were ahead of their time: Tulsi Virani, Anupamaa and more5 cities in West India experiencing real estate boom in 2026Baisakhi 2026: Traditional Baisakhi dishes and their cultural importance in the harvest festivalThis small trick can tell you whether you are consuming watermelon or a toxic fruitEnjoyed ‘The Boys’? Here are more must-watch superhero dramas to binge next123Hot PicksIran warStock market holidayPurple cap winnerOrange cap winnerIPL Points TablePublic holidays April 2026Bank Holidays AprilTop TrendingStock market holidayBank holiday todayKaty PerryAnna Kepner murderDon TzuDelhi-Dehradun ExpresswayPraful HingeIPL Points TableKavya MaranNFL news roundup
NEW DELHI: People getting compensation for land acquired for national highway projects have been exempted from payment of income tax and stamp duties, a move that will bring relief to a large number of landowners and farmers. The Union road transport ministry has said that no deduction of tax at source (TDS) shall be made on such compensation payments, seeking compliance with this norm by all NH-owning agencies. During the 2025-26 financial year, around Rs 20,000 crore was disbursed for acquisition of over 10,000 hectares for highway development by different agencies. In a circular issued to NH agencies, including NHAI, road transport ministry said that compensation disbursed on acquisition of land under NH Act in cases where such compensation is determined as per provisions of land acquisition law of 2013 will be “treated as exempt” from levy of income tax under the law. The letter 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 under awards exempted under land acquisition law of 2013 shall not be taxable, even in absence of a specific provision.