No tax deduction at source for accident compensation


Should the Airport Authority of India deduct tax at source on money it pays as compensation for an accident on its premises? Ruling in Geeta Jethani v Airport Authority of India, the National Consumer Disputes Redressal Commission (NCDRC) in New Delhi held that the Airports Authority of India (AAI) should not have deducted tax at source from an amount it paid out as compensation as the payment was for damages. It held that “an information to the Income Tax Authority would suffice”.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.