https://www.taxtmi.com/caselaws?id=433758 Interest awarded on delayed payment of motor accident compensation is treated as compensatory, not as ordinary income arising from a borrowing, debt, service fee, or similar charge. Read with the Motor Vehicles Act and the Income-tax Act, the amount is not subject to tax deduction at source under Section 194A where, on a year-wise spread, the interest payable to each claimant does not cross the statutory threshold. In such a situation, any TDS already deducted is treated as having been made on an erroneous basis and is refundable. en-us Mon, 30 Jan 2023 00:00:00 +0530 Fri, 13 Oct 2023 16:21:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=433758 Interest awarded on delayed payment of motor accident compensation is treated as compensatory, not as ordinary income arising from a borrowing, debt, service fee, or similar charge. Read with the Motor Vehicles Act and the Income-tax Act, the amount is not subject to tax deduction at source under Section 194A where, on a year-wise spread, the interest payable to each claimant does not cross the statutory threshold. In such a situation, any TDS already deducted is treated as having been made on an erroneous basis and is refundable. Case-Laws Income Tax Mon, 30 Jan 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=433758