No Tax On Road Accident Victim’s Compensation Going Forward – Explained

If a person gets injured or passes away due to a road accident, in such a case, the MACT may award them compensation along with an interest amount awarded from the date of the claim petition, as such compensation can take years to be received by the victims. Up till now, the accumulated interest of over Rs 50,000 in motor accident compensation cases was being taxed at a 10 percent TDS rate. The finance minister has now announced that no tax will be levied on such compensation and interest anymore.