Tax deduction exemption for compulsory acquisition compensation applies when an award or agreement qualifies for income-tax exemption.

Non-deduction of tax at source applies to compensation or enhanced compensation for compulsory acquisition of specified immovable property otherwise covered by Section 393(1), Table Sl. No. 3(iii), where the income is exempt from income-tax under section 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013. The payment must be made under an award or agreement qualifying for that exemption.

---

---

---