capital gain
This query is : Resolved
Sejal Lalit Jain
(Querist)
13 July 2011
Any claim received under the car insurance policy needs to be reduced with cost while calculating capital gain if car is sold in the year of claim received ?
CA PARAS BAFNA
(Expert)
13 July 2011
It depends. If the claim is received in respect of normal repairs, and the expenditure has been debited to P&L A/c,
then you should credit the receipt to P&L.
*
If the claim is due to an accident and the cost of major repairs have been debited to
car a/c , then you have to credit the receipts to car a/c.
*
In case Car is Sold after accident without any repairs, then the insurance claim amount will be deducted from the WDV of Car.
then you should credit the receipt to P&L.
*
If the claim is due to an accident and the cost of major repairs have been debited to
car a/c , then you have to credit the receipts to car a/c.
*
In case Car is Sold after accident without any repairs, then the insurance claim amount will be deducted from the WDV of Car.
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