*Compensation is not income*
Motor Vehicles Act (59 of 1988) S.168 — Income-tax Act (43 of 1961), S. 194 — Compensation in motor accident cases — Interest accrued on deposit of compensation — Deduction of TDS — Compensation awarded in motor accident cases cannot be categorized as ‘ income— — Compensation is awarded to victims for their restitution and rehabilitation — Compensation awarded cannot be subjected to TDS. CDJ 2015 Ch HC 110, CDJ 2015 Kar HC 532, CDJ 2004 NHC 1575 (Mad), Dissented From.
Income Tax Act (43 of 1961) S.194 — Deduction of TDS — On compensation amount — Compensation awarded or interest accruing on compensation, cannot be subjected to TDS — Compensation does not fall under term ‘ income— . (Paras 13, 16, 17)
MD, TNSTC
Vs Chinnadurai.
Madras High Court [ SJ ]
CRP(PD) No. 1343 of 2012
*AIR 2016 MADRAS 146*
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