https://www.taxtmi.com/caselaws?id=358415 The High Court ruled that interest paid on compensation under the Motor Vehicles Act should not be subject to income tax deduction at source (TDS) by the Insurance Company. The Court emphasized the social welfare nature of the Act, stating that compensation for victims is not taxable income but for restitution and rehabilitation. Considering the hardships faced by victims, the Court held that interest on delayed compensation should not be subjected to TDS. The Court upheld the Tribunal's orders, concluding that interest paid along with compensation is exempt from TDS, dismissing revision petitions and disposing of pending applications accordingly. en-us Wed, 04 Apr 2018 00:00:00 +0530 Wed, 11 Apr 2018 16:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=358415 The High Court ruled that interest paid on compensation under the Motor Vehicles Act should not be subject to income tax deduction at source (TDS) by the Insurance Company. The Court emphasized the social welfare nature of the Act, stating that compensation for victims is not taxable income but for restitution and rehabilitation. Considering the hardships faced by victims, the Court held that interest on delayed compensation should not be subjected to TDS. The Court upheld the Tribunal's orders, concluding that interest paid along with compensation is exempt from TDS, dismissing revision petitions and disposing of pending applications accordingly. Case-Laws Income Tax Wed, 04 Apr 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=358415