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A. K. JAYASANKARAN NAMBIAR, K. V. JAYAKUMAR
New India Assurance Co. Ltd. – Appellant
Versus
Ayisha, W/O Late Ahammed – Respondent
JUDGMENT :
Dr. A.K.Jayasankaran Nambiar, J.
The New India Assurance Company, that was the 1st respondent in WP(C) No.8280 of 2013, is the appellant before us, aggrieved by the judgment dated 21.02.2023 of a learned Single Judge in the Writ Petition.
2. The brief facts necessary for the disposal of this Writ Appeal are as follows:
The Writ Petition was filed by one Ayisha, who was the widow of one Ahammed, who had died in a road accident. In OP(MV) No. 2402 of 2006 that was preferred in connection therewith before the Motor Accidents Claims Tribunal, Thrissur, the Motor Accidents Claims Tribunal, vide award dated 10.01.2013, assessed a compensation of Rs.3,01,000/- with interest at the rate of 8% from the date of petition till the date of realisation in favour of the petitioner. It is not in dispute that the Insurance Company accepted the amount and decided to pay the compensation awarded to the writ petitioner. At the time of making the payment of the interest portion, the appellant herein deducted tax at source at the rate of 20% on the interest component finding that as per the extent provisions of Section 194A of the Income Tax Act it was required to make such a deduction when the i
Interest on compensation awarded by the Motor Accidents Claims Tribunal is taxable under the Income Tax Act, and TDS applies when interest exceeds Rs.50,000.
Interest awarded as compensation under MV Act is deemed a capital receipt, not taxable under the Income Tax Act, thus refund of incorrectly deducted tax is warranted.
Compensation under Motor Vehicles Act for accident death is not taxable income; no income tax deduction required from deceased's gross income when computing loss of dependency, as it is remedial rest....
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