Citations for Tax on compensation received from builder
This query is : Open
04 June 2025
I have received refund from the builder basis order of NCDRC. The refund includes principal which I had paid him 12 years back PLUS interest @12% for the 12 year period. He has deducted TDS on Deposit @10% which I have protested. I understand that either there is no tax on such interest OR at best capital gains tax for which there is no TDS applicable. Please help.
04 June 2025
you are not wrong.
But Ssme payers try to deduct tds to avoid any penal measures from Income-tax department. you may give the reference of NCDRC order https://www.scconline.com/blog/post/2022/03/11/will-tax-deducted-at-source-be-attracted-on-compensation-awarded-under-consumer-protection-act-in-the-form-of-simple-interest/
Still if the TDS has been deposited with the Income-tax department, NCDRC may not give you any relief at this stage.
But Ssme payers try to deduct tds to avoid any penal measures from Income-tax department. you may give the reference of NCDRC order https://www.scconline.com/blog/post/2022/03/11/will-tax-deducted-at-source-be-attracted-on-compensation-awarded-under-consumer-protection-act-in-the-form-of-simple-interest/
Still if the TDS has been deposited with the Income-tax department, NCDRC may not give you any relief at this stage.
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17 June 2025
Thank you so much for your reply and the supporting citation which is of great help. There are 2 points for which I am bothering you:
1. Is there any Supreme Court citation on the same line of thought (as NCDRC) or maybe an adverse view!
2. If I had already informed the builder of the fact of non-deduction and he had even taken it in writing from me and yet he has deducted the interest and paid to the department, isnt he himself responsible for taking a refund from the dept or getting it adjusted instead of making me do that and get harassed by the deptt? Everyone knows how a normal citizen is harassed by these govt deptts including the IT deptt.
1. Is there any Supreme Court citation on the same line of thought (as NCDRC) or maybe an adverse view!
2. If I had already informed the builder of the fact of non-deduction and he had even taken it in writing from me and yet he has deducted the interest and paid to the department, isnt he himself responsible for taking a refund from the dept or getting it adjusted instead of making me do that and get harassed by the deptt? Everyone knows how a normal citizen is harassed by these govt deptts including the IT deptt.
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