Is the claim awarded by the MACT court with interest taxable? If yes then what is the rate if taxation
DISHA D. SHAH (lawyer) 19 January 2010
No that is not taxable because one time amount and for not to cut TDS you have to file 15H form when amount paid
A V Vishal (Advocate) 19 January 2010
Yes the interest is taxable, however there are dissenting views by different high courts on the matter and further it depends on case to case basis.
Parveen Kr. Aggarwal (Advocate) 24 January 2010
Yes. Interest part is taxable because it may be considered as income. However, compensation is never an income. So, compensation awarded by the Tribunal (MACT) is not taxable.
asgari (service) 11 May 2013
TDS ON MACT INTEREST IS TAXABLE BUT THE LIMIT IS 50,000/- IF INTEREST IS MORE THAN 50,000 THAN TDS MUST BE DEDUCTED.....
R RAJAGOPALAN (ADVOCATE) 11 May 2013
See Section 194A(3)(ix) of the Income Tax Act 1961.
The principal amount of compensation awarded by the MACT is not taxable, as it is not 'income' within the meaning of Section 2 (24) of the Income Tax Act 1961.
Interest on MACT Compensation is fully taxable as ' Income from Other Sources' . The rate applicable will be the appropriate slab-rate.
asgari (service) 12 May 2013
There is lof of confusion on TDS on MACT Interest. It is clear that it is taxable.
But the problem is for Insurance Companies....
Some company prepare cheque for amount of TDS deducted and give these cheques to MACT COURT along with award amount cheque.......
Some deposit TDS amount with INCOME TAX
Who is right....
In first case the claimant get both amount instantly from MACT i.e. award amount+Interest and TDS amount
In another case the claimant get only Award amount + Interest anf for TDS amount he is given FORM16A and he has to file return with Income Tax to get it refund.....
Is there any judgement in this regard ... if any please provide....
I am aware of some judgement in which judge writes in judgement that TDS amount deducted should be deposited with court... In some judgement judge instruct not to deduct TDS....
please guide us in this matter......
R RAJAGOPALAN (ADVOCATE) 12 May 2013
The issues now raised are different from those which had been raised in the original query, which was whether the Compensation was taxable at all.
haurdik (management trainee) 24 March 2014
is the interest amount taxable as per the current laws standing??
is the exemption limit of 50,000 per year or is a accumulated limit for exemption for all the years put together??
thanks in advance