Archive · 20 Sep 2025
Chhattisgarh HC: Land Compensation from NHAI is Tax-Exempt
Imagine someone sells their land to the government for a highway.
The court has said the money they get for the land shouldn't be taxed.
A man named Sanjay paid taxes on money he received when the government took his land, but then realized he didn't have to.
The court agreed with Sanjay and said that because the government took his land for a highway, the money he got for it is tax-free.
This decision helps anyone whose land is taken for public projects.
Chhattisgarh High Court ruled land compensation from NHAI is exempt from income tax.
The case involved a taxpayer, Sanjay, who had land acquired for Rs 73 lakh.
The ruling is based on Section 96 of the RFCTLARR Act, 2013.
The court cited a 2015 Central Government order for context.
The decision ensures tax exemption applies to land acquired under the National Highways Act.
- Who
- The Chhattisgarh High Court and a taxpayer named Sanjay.
- What
- Ruled that compensation received for land acquired by NHAI is not subject to income tax.
- When
- Recent ruling, referencing a 2015 Central Government order.
- Where
- Chhattisgarh High Court.
- Why
- To clarify that tax exemptions under the RFCTLARR Act apply to land acquired under the National Highways Act.
- Legal Issue
- Income tax on land compensation
- Court
- Chhattisgarh High Court
- Taxpayer
- Sanjay (unspecified last name)
- Land Acquisition
- National Highways Authority of India (NHAI)
- Compensation Amount
- Rs 73 lakh
- Relevant Act
- RFCTLARR Act, 2013 (Section 96)