• Compensation as interest ordered by NCDRC

On account of inordinate delay in delivery of flat we filled the case in NCDRC. Order was that builder will refund the money with Compensation as 11% interest. Builder deducted TDS, can I claim a refund from Income tax department, since the compensation was mental agony, cost of money to us etc. We did not get the flat and took refund. Thanks. Please substantiate with latest judgment on the subject. Thanks.
Asked 6 years ago in Taxation

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

11 Answers

Yes you can Calum TDs in this case. The compensation of court is not income

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Yes, you can claim TDS if the amount is awarded against mental pain, agony, harassment etc. 

 

Suneel Moudgil
Advocate, Panipat
2386 Answers
6 Consultations

no TDS could be deducted in case of any payment made under the orders of the consumer court, as these orders compensated the consumer for his losses and did not amount to profit or income for him.

 

You can claim refund of TDS deducted 

 

The UT State Consumer Disputes Redressal Commission, headed by Justice (retd) Sham Sunder has ruled that the judgment debtor cannot deduct TDS on the amount of interest paid to a consumer in compliance with a decree passed by the consumer courts.

 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

the TDS that was deducted is illegal and should be refunded. you should file for a refund with the IT department in case he is not willing to give you back the money as compensation is not income and hence cannot be taxed.

regards

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

Dear Sir,

First get back the amount as ordered by NCDRC then file a representation before IT department for refund, if any issue arise approach the appellant authority.

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

If TDS was deducted due to property purchase of course you can claim the refund of the TDS which is paid to Income Tax Department

Vimlesh Prasad Mishra
Advocate, Lucknow
6851 Answers
23 Consultations

you can claim the refund at the time of filing your annual returns or you can adjust the amount already paid against your current year’s tax liability.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

you can claim the refund of the TDS if same is the compensation and same is not income though for interest part same is taxable. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

TDS directed by the builder in lieu of the payment towards compensation is arbitrary and you can claim refund for the same.

Siddharth Jain
Advocate, New Delhi
6617 Answers
102 Consultations

hello, 

In any view of the matter you will get your TDS at the time of filing the return or the same will be adjusted against your tax liabilities. 

There is no point of filing an application to get the refund. 

Regards 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

If you are entitled for refund as per income tax rules you can claim it. 

You may confirm the eligibility. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer