TMI BlogTDS on interest in respect of compensation received in accident case under motor vehicle act 1988.X X X X Extracts X X X X X X X X Extracts X X X X ..... er "the court"), one or more than one litigant (hereinafter the depositor ) is directed by the court that a specified amount (hereinafter "deposit") be deposited in the bank either directly or through the court in order to protect the interest of litigants. Such deposits (usually time deposits) are kept in the bank in the names of Registrar/Prothonotary and Senior Master or any other name as per the order of the court. Difficulties are faced in making TDS on the interest periodically accruing on such deposits/time deposits and about the person(s) as deductee who is entitled to TDS certificate in Form 16A . 3.1 The matter has been examined in the Board and it has been decided that, subject to para 4 below, this circular shall be applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the directions of the court, the credit of TDS on interest accruing on such deposit will be allowed to the Insurance company which has made the said deposit. b . The Court while deciding the cases of land compensation directs the authority concerned (liable for making payment of compensation) to deposit any sum in time deposit in any bank, the TDS on time deposit shall be in the name of the authority making deposit, if such authority is an entity liable for charge to Income-tax on its income. In case the deposit in the bank is by Central or State Government no tax will be deducted. c . The court adjudicating upon financial dispute during pendency of proceedings direct any party(ies) to deposit any amount as security in time dep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the deposit, indicating their respective share). ( c ) Date of order of the court by which directions were issued to make the aforesaid deposit. ( d ) Amount ordered to be deposited. ( e ) Name/branch of the depository bank, if known. ( f ) Whether assessed to income-tax, if yes, Permanent Account Number (PAN) ( g ) Any other information It is certified that the information above is true to best of my knowledge and belief. Date: Place (SIGNATURE OF THE DEPOSITOR) Forwarded to the Bank concerned for proper compliance of the TDS provisions of the Income-tax Act, 1961 .Tax is to be deducted in the name ..... X X X X Extracts X X X X X X X X Extracts X X X X
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