Tue Nov 05 01:30:00 UTC 2024: ## Karnataka High Court Urges Central Government to Address Tax Exemption Discrepancy for Land Acquisition
**Bengaluru, November 5, 2024:** The Karnataka High Court has called on the Central government to address the disparity in income tax exemptions for compensation received by landowners whose land is acquired under different laws. The court noted that while the 2013 Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act offers substantial benefits and tax exemptions, individuals losing land under other state laws are not eligible for the same advantages.
In a recent ruling, the High Court upheld an appeal by the Income Tax Department, ruling that the tax exemption cannot be extended to compensation received under laws other than the 2013 Act. However, the court expressed concern regarding the “heartburn” experienced by landowners who lose their property under state laws.
The court highlighted that the compensation packages and overall financial benefits offered under the 2013 Act are significantly more favorable compared to those provided by state legislation.
“It is high time that the Central government addresses this aspect of the matter and assuages the grievance of land-losing farmers,” stated the court, suggesting that a uniform approach is needed to ensure fairness for all land-losing individuals, regardless of the governing acquisition law.
The court has sent copies of the judgement to the Ministry of Finance and the Law Commission of India, urging them to consider addressing this issue and potentially amending existing regulations to create a more equitable system.
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