crop insurance


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Querist : Anonymous

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Querist : Anonymous (Querist)
15 July 2011 Crop insurance received in the f.y. 2009-10 is taxable or not.n if it is taxable then in which head.IFOS or agriculture income.plz its urgent.thanks in advance..

15 July 2011 The insurance claim received against Stock or inventory is credited to P& L A/c.
This is because , the item covered under insurance as well as the insurance charges have an effect on P&L A/c.

Similarly , if the premium has been considered while computing the Net Agriculture Income, insurance proceeds will also be credited to there only.

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Querist : Anonymous

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Querist : Anonymous (Querist)
15 July 2011 thank you sir.it means it is taxable under agriculture income.

15 July 2011 It is not taxable as it is forming part of agriculture income.

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Querist : Anonymous

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20 July 2011 thanks sir but it means slab is increase.

20 July 2011 Yes, the effect of change in slab may take place.


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