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Union Budget 2026: Interest on Motor Accident Compensation Fully Exempt from Income Tax

In a significant relief to motor accident victims, the Union Budget 2026 presented by Finance Minister Nirmala Sitharaman has proposed to exempt the interest component awarded on motor accident compensation from income tax. Official Announcement In her Budget speech, the Finance Minister announced that: Any interest awarded by the Motor Accident Claims Tribunal to a natural person will be exempt from income tax, and no TDS will be deducted on such interest. This proposal mark

Adv. Arjun P M

Mar 12 min read