Accidental claim
This query is : Resolved
17 August 2017
Dear sir
How is the treatment for claim received from insurance company for the accident and the claim received by the daughter in the way of Fixed deposit after 18 years with interest. but Tax deducted on claim amount.
And what return file By the daughter for Claiming the TDS amuont and what income shows in the return.
total Claim amount or Interest amount .
please Reply Fast
How is the treatment for claim received from insurance company for the accident and the claim received by the daughter in the way of Fixed deposit after 18 years with interest. but Tax deducted on claim amount.
And what return file By the daughter for Claiming the TDS amuont and what income shows in the return.
total Claim amount or Interest amount .
please Reply Fast
17 August 2017
There are two questions in your query:
1) Whether insurance claim settlement is taxable?
This is not an income per se but the amount is of non income nature , i.e. it does not involve earnings whatsoever or transfer of any capital asset.
So, the claim is not taxable
1) Whether insurance claim settlement is taxable?
This is not an income per se but the amount is of non income nature , i.e. it does not involve earnings whatsoever or transfer of any capital asset.
So, the claim is not taxable
17 August 2017
2) Settlement received as FD with Interest after 18 years is taxable?
The point to be noted here is that the Interest thing or the FD thing is not decided by the recipient. The claim was delayed for 18 years and as a result the compensation is given as FD with interest. This interest will also forms part of the Settlement claim and therefore, not taxable as income
The point to be noted here is that the Interest thing or the FD thing is not decided by the recipient. The claim was delayed for 18 years and as a result the compensation is given as FD with interest. This interest will also forms part of the Settlement claim and therefore, not taxable as income
17 August 2017
However note that from the date of receipt any income by way of interest or investment of the settlement money thus received will be fully taxable in the hands of recipient
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR-Capital Gain
- CLOSING STOCK QUERY
- Gst on travel by air for business purposes
- GST ISD Query on various AMCs
- DUE DATE FOR ITR FILING
- Query regarding Item 61/62/63 vs Item 64 in ITR-3
- Sale of Mutual Funds In Diffirent Financial Years
- CASH GIFT FROM BLOOD RELATIVE
- TDS offline utility
- Due Date Clarity
- Gst reverse charge mechanism to be claimed in the month of payment
- Itr processing refund
- U/S 194 T
- TDS refund Indemnity Bond
- ITC BENEFIT ON BROKRAGE PAID
- PF wage ceiling
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
