The NCDRC has held that damages awarded cannot be equated with income liable to tax deduction at source (TDS). The National Consumer Disputes Redressal Commission (NCDRC) gave the order while directing the Airport Authority of India (AAI) to refund the TDS it had subtracted from the compensation of Rs. 2.5 lakhs that it had to pay to a couple for death of their daughter. The Court held that in this case the compensation was by way of damages. The damages paid for the death of a person cannot be equated with income as such.
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