Скачать или смотреть Motor accident ke compensation ke interest par kitna tax | TAx updates | section 194A

Taxability on Interest received on compensation of motor accident.

Interest awarded in motor accident claim cases from date of Claim.

Petition till passing of award or judgment in the appeal not being an income, would not be eligible to tax

[2019]
HIGH COURT OF BOMBAY
Rupesh Rashmikant Shah
v.
Union of India

(Interest on compensation) - Whether interest awarded on compensation in motor accident claim cases from the date of Claim Petition till passing of award or in case of Appeal, till the judgment of High Court in such Appeal, is not ‘income’ and therefore would not be eligible to tax - Held, yes - Whether further, provision of deducting tax at source cannot govern taxability of amount which is being paid, hence, section 194A provision relating to deduction of tax at source also cannot make interest income chargeable to tax if it otherwise is not, as it is not a charging provision - Held, yes - Whether however, an interest which may be paid for delay in depositing the awarded amount, would not form part of compensation and, therefore, would fall in the bracket of interest income and would be eligible to tax under normal provisions.

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