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<h1>Interest income under Motor Vehicles Act now exempt for individuals and legal heirs from FY 2026-27 onward.</h1> Interest payable as part of compensation under the Motor Vehicles Act, 1988 to an individual or the legal heir for death, permanent disability, or bodily injury is proposed to be exempt by addition to the Income-tax Act Schedule; the amendment is effective from 1 April 2026 and applies to the tax year commencing then and subsequent years.
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