1. one of my client is received Rs.559800.00 as interest received for late payment on accident Compensation of Motor Accident Claim(MACT), the interest is taxable or not?
(I am aware that the compensation is exempt in the hands of legal heirs but please tell me the taxation effect of Interest received)
2.The client also wants refund of Rs.55980.00 TDS deducted on the said interest u/s 194A. how? I can claim and inwhich section. there is any tax relief for interest income from mact claim.
3. the such interest is not an income, it is taxfree income for taxation purpose. Can i got refund?
the above said client is a house wife and she got the accident claim of her husband, due to delay in payment the insurance company also give interest on the payment and the deduct tds u/s 194A,
new my question is when i apply itr 2 there is no income only tds amount is shown in the itr 2 as other income shows is zero? it is right or wrong?
when i apply itr 2 and entire tds amount is claimed as refund.
please reply again..... whether CPC will grant the refund or they transferred this case to income tax office for manual assessment?
CAclubindia
