Taxability of relief amount received from government
rupini (B.Com) (44 Points)
10 June 2016
aayushi jain
(4 Points)
Replied 10 June 2016
Section 10(10BC) ogf the Income Tax Act 1961 provides that " any amount received or receivable from the Central Government or a State Government or a local authority by an individual or his legal heir by way of compensation on account of anydisaster, except the amount received or receivable to the extent such individual or his legal heir has been allowed a deduction under this Act on account of any loss or damage caused by such disaster."
I hope this helps :)
jayakrishnan rajan
(2 Points)
Replied 23 August 2018
Ankita Chachan
(practitioner)
(548 Points)
Replied 23 August 2018
Whole amount will be exempt under this section.
If he has claimed dedcution earlier under this act on account of loss or damage, then deduction to the extent loss is claimed will not be available.
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