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Crime
Chhattisgarh HC Upholds ₹37.74 Lakh Compensation to Victim’s Mother, No Tax Below ₹5L
✍️ LiveLawBiz
🗓 28 Aug 2026, 05:33 PM
👁 15
The Chhattisgarh High Court confirmed a ₹37.74 lakh compensation award to an accident victim’s mother and ruled that amounts below ₹5 lakh are not taxable.
The Chhattisgarh High Court has upheld a lower‑court order granting ₹37.74 lakh as compensation to the mother of a road‑traffic accident victim. The judgment reiterates the earlier award and provides clarity on the tax implications of such compensation.
The bench observed that under current income‑tax provisions, any compensation amount up to ₹5 lakh is exempt from tax deduction. Consequently, the mother will receive the full awarded sum without any tax liability.
Legal experts note that the decision sets a clear precedent for future personal‑injury compensation cases in the state, confirming that tax is applicable only on the portion exceeding the ₹5 lakh threshold.
The bench observed that under current income‑tax provisions, any compensation amount up to ₹5 lakh is exempt from tax deduction. Consequently, the mother will receive the full awarded sum without any tax liability.
Legal experts note that the decision sets a clear precedent for future personal‑injury compensation cases in the state, confirming that tax is applicable only on the portion exceeding the ₹5 lakh threshold.