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'No Income Tax on MACT compensation'
Millennium Post Delhi
|New Delhi 02February2026
Finance Minister Nirmala Sitharaman on Sunday proposed a tax exemption on awards given by the Motor Accident Claims Tribunal in the Union Budget 2026-27.
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According to the Budget document, the provisions of the Motor Vehicles Act, 1988, inter alia, provide for compensation and an interest on the compensation to be awarded by the tribunal to an individual or his/her legal heir, on account of death or permanent disability or any bodily injury under the said Act.
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