No TDS shall be deducted on claim amount and interest on the deposits, made under the orders of the court in motor accident claims cases.
Circular 8/2011 issued on 14-10-2011 stated that when litigant is directed by the court that a specified amount be deposited in the bank directly or through the court w.r.t motor accident claims. The bank shall in accordance with the provisions of the Act, deduct TDS on the interest accruing on the above mentioned deposit(s) as per existing procedure and at the rates in force. The certificate of deduction of tax shall be issued by the bank in the name of ‘the depositor’.
In nutshell, above circular directed banks to deduct TDS on deposits made in banks w.r.t motor accident claims. Continue reading