TDS not deductible from compensation

TDS not deductible from compensation: National Consumer Commission

New Delhi, August 19, 2012

Damages awarded cannot be equated with income liable to tax deduction at source (TDS), the apex consumer commission has held. The National Consumer Disputes Redressal Commission (NCDRC) gave the order while directing the Airport Authority of India (AAI) to refund the "tax deducted at source (TDS)" it had subtracted from the compensation it had to pay to a couple for death of their daughter.

The AAI had been asked by the apex consumer commission on August 5, 2004 to pay Rs. 2.5 lakh as damages to a Dubai-based couple after their young daughter had died while getting off an escalator maintained by the Authority. Read more.

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