IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA CMPMO No.250 of 2008 Date of decision: 21.4.2011 Oriental Insurance Company …. Petitioner Versus Padma Devi & ors. ….. Respondents Coram: The Hon’ble Mr. Justice Deepak Gupta, J. Whether approved for reporting? No For the petitioner: Mr.Lalit Sharma, Advocate. For the respondents: Mr.Arvind Sharma, Advocate for respondents No.1 to 6. Mr.Tappan Chauhan, counsel for respondent No.7. _____________________________________________ Deepak Gupta, J.(Oral) 1. The only question which arises in this petition is whether the Insurance Company was entitled to deduct TDS on the interest accrued on the amount awarded as compensation under the Motor Vehicles Act. This question is no longer res integra. 2 2. This Court in Oriental Insurance Company Ltd. Vs. Viyasan Devi and others, CMPMO No.386 of 2010 decided on 30.12.2010 after making reference of Section 194-A of the Income Tax Act held that TDS has to be deducted even on the interest income accrued on payments deposited under the Motor Vehicles Act when such interest income exceeds Rs.50,000/-. 3. This Court further went on to hold that Rs.50,000/- should be the income of each individual person and not the entire interest awarded. The order of the learned Motor Accident Claims Tribunal, Shimla is, therefore, set aside and the matter is remanded to it to decide the same in accordance with the law laid down by this Court in the aforesaid petition. 4. The petition is disposed of in the aforesaid terms. No order as to costs. April 21, 2011 ( Deepak Gupta ) (m) Judge