No tax on govt compensation to blast victims

New Delhi, Aug 4 (UNI) The victims of the devastating Mumbai bomb blasts will not be subject to income tax on the compensation received from the Central or state government.

''The Government has decided that the amounts received or receivable by an individual or by the spouse or legal heirs of an individual, by way of compensation on account of any disaster, from the Central or any state government or any local authority shall not be subjected to tax,'' an official statement said here today.

There have been representations expressing apprehension that amounts received by these victims will be taxed, it said.

Disaster will have the same meaning assigned to it under the Disaster Management Act, 2005. Necessary amendments to the Income Tax Act, 1961 will be made at the appropriate time, it added.

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