Income tax act section 194a(3)(ix)

Sir, As per TDS provisions u/s.194A(3)(xi), Interest credited or paid by Motor Accident Claims tribunal if exceeds Rs.50,000 liable to deduct TDS on CREDIT or PAYMENT of Claim along with interest. The term CREDITED has more relevance to decide whether TDS to be deducted or not. In your case even though claimant lodged claim in 2005, it is CONFORMED by Motor Accident Claims Tribunal in year 2015. The time lag is due to investigation carried out by such tribunal to find out the facts and circumstances of case.Once investigation completed, claim will be conformed. Unless tribunal conformed claim, Tribunal can not credit claimant for Claim and Interest amount in its books. so in your case Tribunal credited Claimant account in year 2015 and payment will be made after credit. so as per TDS provisions you have to consider actual credit entry in books. In your case as credit entry is passed in books in 2015, if such credit entry passed exceeds Rs.50000, liable to deduct TDS u/s.194A in year 2015. In TDS provisions you have to consider CREDIT (DUE) or PAYMENT but not ACCRUAL.   Furthur to support above, Claimant have no right for claim unless Tribunal conforms claim and unless Tribunal conforms claim he, need not to show in his Return above income under the head Income from other sources.