• Notification Date: 28-01-2022
• Notification No: N/A

Crores of TDS Refundable from Road Accident Claims

The government collects hundreds of crores as TDS from the road accident claim amount that are to be awarded to the families of the road accident victims. But this money remains unclaimed by the families for years. So, the Supreme Court has ordered the Centre to investigate this issue and to figure out how the amount can be awarded to the families of the road accident victims. Many of these families do not come under the tax bracket and they are often oblivious of the idea of this scheme.

A bench of Justices, Sanjay Kishan Kaul and M M Sundresh, has passed orders regarding this matter. The orders have been passed to ensure that the compensation procedure is carried out smoothly and the families of the victims of road accidents receive the compensation amount as soon as possible. A deadline of two months has been set for the insurance companies. They have been ordered to create a mobile application that can be used as a single platform to claim insurance.

Advocates N Vijayaraghavan and Vipin Nair have pointed out this matter. They figured out that around Rs.600 crore of TDS remained unclaimed in 2017. At present, the amount has massively increased. They requested the court to look into this matter. They also said that around 10-20% TDS is deducted for this allowance.

The Bench of Supreme Court has agreed with this submission. It has ordered that the people who are not aware of the process to claim the reward because of their socio-economic background, must be enlightened about the same. The court has expressed its displeasure with the General Insurance Council (GIC), which is a nodal agency for insurance companies. The bench has been displeased with GIC for taking any measures to launch a mobile application related to the matter. It has been allotted a deadline of two months to complete the task.

According to the apex court, electronic means are required for the completion of the procedure for granting compensation. The entire process should be done through electronic means from filing police reports via email or website, within 48 hours, and the insurance companies will deposit the money electronically via bank transfer method.