motor vehicle accident case

J.Satyamurthy (Querist) 20 November 2008 This query is : Resolved
Sir,Vehicle was covered under subsisting policy,owner/Driver set exparte,Insurance company contested the suit,court awarded some amount towards compensation on various heads.no appeal is preffered by either parties.insurance company has deposited the awarded amount by deducting some amount at source.
now my question to the experts is that can the insurance company legally authourised to deduct some amount and pay the rest to the climants who has no taxable income.Please help with citations if any of which act iam very thankful.

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J.Satyamurthy (Querist) 20 November 2008
plz any body help me

Suresh Kr. Mitruka (Expert) 21 November 2008
Compensation is not an income and so the insurance company has no right to deduct any amount at source.

Tribhuwan Pandey (Expert) 23 November 2008
Mr. Suresh Kr. Mitruka has rightly advised Compensation is not an income so the insurance company cannot deduct any amount under the head of income tax.

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