Bengaluru landowners may face tax hike due to PRR project: Report
Hindustan TimesIn a potential setback for Bengaluru landowners, hundreds of farmers whose properties are being acquired for the city’s Peripheral Ring Road may face tax liabilities on the compensation they receive, Deccan Herald reported. According to the DH report, the Bangalore Development Authority is acquiring approximately 2,560 acres of land under the Land Acquisition Act of 1894, which doesn’t include the tax exemptions provided in the 2013 Right to Fair Compensation and Transparency Act. The court's decision could affect not only farmers involved in the PRR project but also those whose lands are acquired by other state agencies like the Karnataka Industrial Areas Development Board and the Karnataka Road Development Corporation, which do not follow the 2013 Act. Concern among farmers This ruling has caused concern among farmers, as it not only deprives them of fair compensation based on the 2013 Act but also exposes them to income tax liabilities, including a potential 12.5 per cent loss due to Tax Deducted at Source.