Friends,
Himachal Pradesh High Court, in its order dated 25.10.2018 (copy attached), has held that the compensation awarded under the Motor Vehicles Act or the Employees' Compensation Act in lieu of the death of a person or bodily injury suffered in a vehicular accident is considered damage and not income. Therefore, it cannot be treated as taxable income under the Income Tax Act of 1961.
Thanks
From India, Malappuram
Acknowledge(1)
Amend(0)
1446Himachal Pradesh High Court, in its order dated 25.10.2018 (copy attached), has held that the compensation awarded under the Motor Vehicles Act or the Employees' Compensation Act in lieu of the death of a person or bodily injury suffered in a vehicular accident is considered damage and not income. Therefore, it cannot be treated as taxable income under the Income Tax Act of 1961.
Thanks
From India, Malappuram
Acknowledge(1)Amend(0)
Learned member Mr. Agrawal's remarks are right. This is also extendable to compensation received from insurance companies or the owners of vehicles against claims made for injuries sustained in an accident involving vehicles, as both are similar excepting the paying authorities are different. I remember there is also a Supreme Court judgment on this. Let me trace it and post here.
From India, Bangalore
Acknowledge(0)Amend(0)
From India, Bangalore
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Published_draft _rules_on Employees_ compensation 3.6.2020.pdf
Gratuity - Taxation Issues.docx