Mact

This query is : Resolved

Jasmine (Querist)
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16 March 2014 If any individual who has taxable income and tax is being deducted, has received a claim under MACT and he makes a deposit in the bank for the claim amount and wants to submit 15G for the same, claiming that compensation received through MACT is not taxable.. Can the person submit 15G and get away through TDS under section 194A ???

CA Prashant Gupta

CA Prashant Gupta (Expert)
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16 March 2014 Even Though MACT is not taxable but Interest income earned from fixed deposit is taxable.

If a person has taxable income in his hands then submitting 15G, claiming that I do not have taxable income is not appropriate.

The Interest income is taxable regardless the fact whether amount from which deposit is made is taxable or not.