Delhi High Court on NHAI Capital Grant as Subsidy and TDS Deduction Under Section 194C of Income Tax Act

The Delhi High Court ruled on the treatment of capital grants received by the National Highways Authority of India (NHAI) as subsidies and the applicability of TDS deduction under Section 194C of the Income Tax Act. The court held that capital grants should be treated as subsidies and subjected to TDS deduction. This decision provides clarity on tax treatment and compliance requirements for government grants and subsidies, ensuring proper tax administration.