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GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
LOK SABHA
UNSTARRED QUESTION NO. 5922
TO BE ANSWERED ON MONDAY, MARCH 30, 2026/CHAITRA 09, 1948 (SAKA)
FISCAL IMPACT OF TAX EXEMPTION FOR ROAD ACCIDENT COMPENSATION
5922. SHRI RAJMOHAN UNNITHAN:
Will the Minister of FINANCE be pleased to state:
(a) whether the Government has evaluated the fiscal impact of tax exemptions provided for road
accident compensation; and
(b) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): - The exemption to the interest income under the Motor Vehicles Act, 1988 to an individual or his
legal heir has been proposed by the Finance Bill, 2026. After exemption becomes law, the fiscal impact
of the exemption may be evaluated.
(b):- Does not arise in view of the above.
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