TDS Refund

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2011 Hello Experts
First of all want to Wish................... a very Happy New Year 2011

&
There is a situation with one of my friend
His father was died in a road accident by a DTC bus.
They file a suit against the driver
and after 5 yrs they got their compensation from the driver and also from the insurance company after deducting TDS of Rs. 45000

The money after deducting TDS is transfered in the account of my friends' mother who is a pensioneer

Now my question is how they can claim TDS refund.

Please guide me by a detailed procedure.

Thanks

Sanaulla Sharief

Sanaulla Sharief (Expert)
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06 January 2011 file IT returns in her name and if her income is below 1.9lacks per annum she can claim full amount TDS. If income is more than 1.9Lacks it can be adjusted with tax payable.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 January 2011 thank u so much sir...

Sir plz also tell me whether lump sum
compensation reced by them is exempt. If yes then under which section of IT Act
&
for claiming refund she has to file return
on 31st July 2011...

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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28 July 2025 Here’s a detailed guide on your friend’s mother claiming TDS refund on the compensation amount she received:

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### 1. **Is the compensation amount taxable or exempt?**

* Compensation received due to **accidental death** or injury can be exempt under **Section 10(10D)** or **Section 54** or some other relevant exemption depending on the nature of compensation.
* However, **compensation from a bus accident suit and insurance claim** usually comes under **exempt income** if it’s on account of personal injury or death.
* It’s best to check the exact nature of the compensation with a tax advisor, but generally, compensation for death/injury is **not taxable**.

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### 2. **How to claim the TDS refund?**

* Since TDS of Rs. 45,000 was deducted on compensation payment, but the compensation itself is likely exempt, the recipient can claim a **refund of TDS** by filing an **Income Tax Return (ITR)**.

* The mother (the recipient) should file her **ITR for the relevant Assessment Year** (the year in which the compensation was received).

* She should report:

* The compensation received (and claim exemption if applicable).
* The TDS amount deducted (as per Form 16A or TDS certificate from the insurance company or driver).

* If her **total taxable income is below the basic exemption limit (Rs. 1.9 lakhs for FY 2010-11)**, she will get a **full refund** of the TDS deducted.

* If her income is **above the exemption limit**, the TDS will be adjusted against her tax liability.

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### 3. **When to file the return?**

* The **due date for filing the ITR** is generally **31st July** of the assessment year (for FY 2010-11, AY 2011-12 it is 31st July 2011).

* She should file the return within the due date or before the belated return deadline to claim the refund.

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### 4. **Documents needed for filing ITR:**

* Compensation receipt proof
* TDS certificate (Form 16A) showing Rs. 45,000 deducted
* PAN card details
* Bank details (for refund credit)

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### Summary Steps:

| Step | Action |
| ---- | ------------------------------------------------ |
| 1 | Confirm compensation is exempt |
| 2 | Collect TDS certificate/Form 16A |
| 3 | File ITR under correct category, claim exemption |
| 4 | Show TDS deducted in ITR and claim refund |
| 5 | Wait for refund processing by Income Tax Dept |

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If you want, I can help draft the return filing details or the exemption claim part. Would you like that?

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