Home Judgments & Orders Bombay High Court No Income Tax on Interest from Accident Compensation: Bombay HC

No Income Tax on Interest from Accident Compensation: Bombay HC

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No Income Tax on Interest from Accident Compensation: Bombay HC
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Bombay High Court ruled that that income tax should not have been deducted from the interest on the compensation awarded by the court. Further added that interest awarded on compensation in motor accident cases is not ‘income’ and therefore not liable to be taxed under the Income Tax Act, 1961.

The significant ruling was given by a bench of Justice Akil Kureshi and Justice S J Kathawalla on a plea by accident victim Rupesh Shah, who was hit by a car 40 years ago.

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