Compensation & interest on account of motor accident
This query is : Resolved
RAJANEESH V R
(Querist)
29 August 2018
Sir, One of my friend received compensation on account of Motor Accident... Is compensation received from Insurance company on Motor Accident is taxable? If yes, what are the tax implications ? Under which head, thease are taxable? Can we claim TDS in respect of that ? He is earning income from Salary and also have business income
K Srinivas, CMA CS
(Expert)
30 August 2018
Compensation received is in the nature of Capital receipt and not taxable
RAJANEESH V R
(Querist)
06 September 2018
thank you..the Insurance Company deducted 10% TDS on total amount paid to the party u/s 194A..Shall we take all such amount under Other sources and claim respective TDS ? or Only interest portion?
K Srinivas, CMA CS
(Expert)
06 September 2018
You need to mention only interest income in ITR. Whole amount is not taxable
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