Accidental death claim

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This discussion addresses the tax implications of an accidental death claim where TDS was deducted under Section 194A. Initially, Section 10(10D) was suggested for exemption, but it was clarified that this section applies only to life insurance policies. For compensation received under the Motor Vehicles Act, which is generally not considered income, the advice is to declare it under 'any other' income category in the EI sheet, with a description of 'Compensation under Motor Vehicle Act'.

B. vignesh

B. vignesh (Querist)

01 April 2024 An amount was received for accidental death from an Insurance company and such company deducted TDS under section 194A. So, my query is can I take exemption or deduction in respect of that tax amount deducted and if so, under which section of the income tax act can I claim?

Nikhil Kaushik

Nikhil Kaushik (Expert)

01 April 2024 this should help you. https://taxguru.in/income-tax/tds-interest-compensation-deductible-insurance-company-till-01-06-2015.html
The exemption is to be claimed under Section 10(10D).

B. vignesh

B. vignesh (Querist)

03 April 2024 Thanks for your advise sir and In case such amount received under motor vehicles act we cannot take exemption under section 10(10D) because such sections is pertains to life insurance only. This case looks like the amount not received under life insurance policy and after I have gone through few websites, the compensation received is not an income. So, which section will be suitable to claim exemption sir?

Nikhil Kaushik

Nikhil Kaushik (Expert)

03 April 2024 okay. in that case, do not look for the section as it is not provided in the act. In the EI sheet, in the nature of income, select "any other." In The description - "Compensation under Motor Vehicle Act."

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