crop insurance

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Querist : Anonymous

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..

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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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.

Querist : Anonymous

Querist : Anonymous (Querist)

15 July 2011 thank you sir.it means it is taxable under agriculture income.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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15 July 2011 It is not taxable as it is forming part of agriculture income.

Querist : Anonymous

Querist : Anonymous (Querist)

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

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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20 July 2011 Yes, the effect of change in slab may take place.