General ins claim recd
This query is : Resolved
K G Karthikeyan
(Querist)
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) ?
Will the answer differ if it is claim for VEHICLE recd. (due to road accident) ?
Amol S Joglekar
(Expert)
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
(Querist)
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
(Querist)
21 September 2012
Or, reference to any section or website or link is also welcome.
Amol S Joglekar
(Expert)
21 September 2012
IT is taxable. (in most of the cases there is hardly any PROFIT element in the CLAIM)
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