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<!DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd"> <html xmlns="http://www.w3.org/1999/xhtml"> <head> </head> <body> <div style="font-family:Verdana, Geneva, sans-serif; font-size:12px; text-align:justify"> <table width="800" border="0" style="border:1px solid #ccc;padding:5px;" align="center" cellpadding="6" cellspacing="0"> <tr> <td align="left" valign="top"> <br /> High Court of Madras <br /><br /> MACT award not classifiable as “income”<br /><br /> - (02 Jun 2016)<br /><br /> </td> </tr> <tr> <td align="left" valign="top"><a href="http://judis.nic.in/Judis_Chennai/list_new2_Pdf.asp?FileName=276258">Tamil Nadu State Transport Corporation v. Chinnadurai</a></td> </tr> <tr> <td align="left" valign="top" style="background-color:#FDEDCE"><strong>Compensation awarded by the Motor Accident Claims Tribunal, and interest accruing therefrom, are not subject to TDS (tax-deducted-at-source) and the same cannot be insisted on being paid to tax authorities, the Madras High Court held..<BR><BR> Justice Muralidaran differed from several High Court judgments that had stated TDS was payable on interest earned from the compensation amount, noting that previous judgments had not considered welfare nuances.<BR><BR> Rubbishing the existence of some great divide between the Motor Vehicle Act and the Income Tax Act qua TDS, the suggested instead that in a conflict between a social welfare legislation and taxation legislation, the social welfare legislation would prevail for serving a larger public interest. Moreover, it added, compensation and interest awarded do not fall under the definition of ‘income’ under the Income Tax Act 1961.</strong></td> </tr> <tr> <td align="left" valign="top" ><strong></strong></td> </tr> <tr> <td align="left" valign="top" ><strong>Tags : mact, compensation, interest, tds, welfare</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <!--<td><strong>Source : <a target="_new" href="http://www.manupatrafast.com/">newsroom.manupatra.com</a></strong></td>--> <td align="left" valign="top"><strong>Source : newsroom.manupatra.com</strong></td> </tr> <tr> <td align="left" valign="top"> </td> </tr> <tr> <td align="left" valign="top">Regards</td> </tr> <tr> <td align="left" valign="top">Team Manupatra</td> </tr> <tr> <td align="left" valign="top"> </td> </tr> </table> </div> </body> </html>