Chhattisgarh High Court : Compensation Received from NHAI for Acquisition of Land is not Taxable

The Chhattisgarh High Court has held that compensation awarded for the acquisition of land from NHAI is not taxable under Section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.

The Court held that once the amount of compensation is determined under the provisions of the aforementioned Act, exemptions from income tax, stamp duty and fees would be applicable.

The petitioner, whose agricultural land had been acquired by NHAI, moved to the High Court after the Income Tax Officer rejected his application, contending that the Act of 1956 fell under the list of enactments specified in the Fourth Schedule and therefore, the same would be excluded from the purview of the RFCTLARR Act.

[Sanjay Kumar Baid v. Income Tax Officer]