HC held that interest awarded in motor accident claim cases from ...

Motor Accident Claim Interest Exempted from Taxation as Compensatory Relief Under Income Tax Act Provisions

May 24, 2025

Case Laws Indian Laws HC

HC held that interest awarded in motor accident claim cases from the date of claim petition until award or appellate judgment is not taxable income. The compensatory interest, integral to calculating just compensation, does not constitute chargeable income under Income Tax Act. Sections 56(2)(viii), 145B(1), and 194A do not alter the non-taxable nature of such interest. The interest, being compensatory and linked to delayed computation of compensation, remains exempt from taxation. The ruling aligns with Supreme Court precedents interpreting the compensatory character of such interest awards in motor vehicle accident compensation cases.

View Source

← Previous Next →

HC held that interest awarded in motor accident claim cases from ...

Motor Accident Claim Interest Exempted from Taxation as Compensatory Relief Under Income Tax Act Provisions

May 24, 2025

Case Laws Indian Laws HC

You may also like:

TDS liability on Insurance companies - TDS u/s 194A -Taxability of interest awarded by the Motor Accident Claim Tribunal - Period is from the date of the Claim Petition...

TDS on interest arising from Motor Accidents Claim - Validity of the order of the Motor Accidents Claims Tribunal issuing directions to refund by the Insurance Company...

Just because an assessee does not claim double taxation relief in respect of an income, it does not entitle the assessee to exclude that income from taxable income....

This case deals with the disallowance of expenditure u/s 14A of the Income Tax Act, which pertains to expenditure incurred in relation to exempt income. The key points...

TDS on compensation and interest awarded by the Motor Accident Claims - Compensation cannot be categorized or even described as income - TDS is not liable to be deducted - HC

Rejection of claim for interest on delayed refund - If the claim for refund itself was not maintainable in law, the question of grant of interest does not arise. The...

Taxability of interest income - Interest on deposit while the matter was in dispute - claim arouse against accident under motor vehicle Act - TDS u/s 194A r.w.s. 56 of...

Validity of deduction of TDS u/s 194A on interest - Motor Accident Claims - Enhanced Principal - The Insurance Company is directed to pay the TDS amount deducted on the...

Taxability of Interest income - interest received u/s. 28 of Land Acquisition Act, 1894 - the interest granted by the reference Court u/s. 28 of the Land Acquisition Act...

The Appellate Tribunal adjudicated on the issue of addition of interest income and penalty u/s 271(1)(c). The assessee contended that the interest income from a Fixed...

Claim of Loss - Deduction u/s. 57 - Taxability of real income / net interest income - The Tribunal observed that the investment in perpetual debt instruments (PDIs) was...

Disallowance of the interest claimed by way of set of - income from other sources - establishment of nexus - interest income with interest expenses - to claim of set off...

Section 90 of the Income Tax Act allows relief from double taxation by granting foreign tax credits (FTCs) on foreign income taxed in both India and the other country....

ITAT adjudicated a tax dispute concerning interest income from a non-performing debt. The tribunal determined that no interest income could be recognized when the debtor...

Income derived from cultivation and sale of white button mushrooms was characterized as agricultural income exempt u/s 10(1) of the Income Tax Act, following the...

Quick Updates: