27 February 2017
What is the difference between Sec.194a(3)(ix) and Sec.194a(3)(ixa) of Income Tax Act.
I was awarded under the Motor Vehicles Act, a compensation of Rs.13,50,000/- in the year 2011, along with interest at 6% pa calculated from date of filing the petition till the date of deposit, by Motor Accident Claims Tribunal. Insurance Company appealed against the award but was confirmed by High Court. Finally, Insurance Company deposited the sum of Rs.Rs.13,50,000/- in Nov., 2016, along with interest of Rs.3,50,000/- after deducting tax of about Rs.1,60,000/-.
Is TDS by Insurance Company justifiable.
Sec.194a(3)(ix) states that Sec.194A (1) shall not be applicablen (1) to such income credited by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal; (2) to such income paid by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income or, as the case may be, the aggregate of the amounts of such income paid during the financial year does not exceed fifty thousand rupees;
How to harmoniously intrepret Sec.194a(3)(ix) states that Sec.194A (1).
Please clarify.
Read more at: https://www.caclubindia.com/experts/ask_query.asp