https://www.taxtmi.com/caselaws?id=302110 Interest on delayed compensation under Section 4A of the Workmen's Compensation Act, 1923 was treated as a taxable revenue receipt, because it arises only on default in payment after compensation becomes due. The Kerala HC held that the Income Tax Act's wide definition of interest covers this component, and the Section 194A(3)(ix) exemption is confined to interest on Motor Accidents Claims Tribunal awards within the statutory limit. As no applicable exemption extended to workmen's compensation, the payer was bound to deduct tax at source under Section 194A(1). The deduction from the interest portion was therefore upheld. en-us Mon, 08 Jul 2013 00:00:00 +0530 Thu, 05 May 2022 14:57:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302110 Interest on delayed compensation under Section 4A of the Workmen's Compensation Act, 1923 was treated as a taxable revenue receipt, because it arises only on default in payment after compensation becomes due. The Kerala HC held that the Income Tax Act's wide definition of interest covers this component, and the Section 194A(3)(ix) exemption is confined to interest on Motor Accidents Claims Tribunal awards within the statutory limit. As no applicable exemption extended to workmen's compensation, the payer was bound to deduct tax at source under Section 194A(1). The deduction from the interest portion was therefore upheld. Case-Laws Indian Laws Mon, 08 Jul 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302110