SAU-4 | Compensation awarded under Workmen Compensation Act “Not liable to Income Tax”

In a recent judgment, the Hon’ble High Court of Himachal Pradesh in the matter of National Insurance Company Ltd. Vs. Indra Devi decided that compensation awarded under Employees’ Compensation Act or Motor Vehicles Act in lieu of death of a person or bodily injury suffered in a vehicle accident, is a damage awarded to the person and not an income, hence cannot be charged to Income Tax.

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