General ins claim recd

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K G Karthikeyan (Querist)
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21 September 2012 What is the tax treatment of general insurance claim recd. due to loss of STOCK from fire. This claim is credited in P & L a/c. Is this taxable?

Will the answer differ if it is claim for VEHICLE recd. (due to road accident) ?

Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2012 Claims related to REVENUE items (Stock in above case) shall be routed through P&L account. Vehicle, assuming to be a balance sheet item, treatment will be on the principles of "block of ASSETS"

K G Karthikeyan

K G Karthikeyan (Querist)
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21 September 2012 Yes, itz routed thro' P & L a/c only. I'm asking about the taxability for income tax part. I need a more clear answer.

K G Karthikeyan

K G Karthikeyan (Querist)
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21 September 2012 Or, reference to any section or website or link is also welcome.

Amol S Joglekar

Amol S Joglekar (Expert)
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21 September 2012 IT is taxable. (in most of the cases there is hardly any PROFIT element in the CLAIM)

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