Insurance claim for fire
This query is : Resolved
Anvay Chaudhary
(Querist)
19 August 2013
What will be the adjustment in the income tax Act if the insurance claim received on account of fire for the plant and machinery.
PLZ also refer section no.
PLZ also refer section no.
CA UMESH DULAL
(Expert)
19 August 2013
if the block of assets is empty as a fire (i.e. all the assets of the block are totally destroyed), the sum received minus wdv of block of assets should be treated as capital gain/loss as the case may be.
If the sum received is greater than wdv of block of assets, treatment is same as above.
In other case, deduct the amount received from insurance company from the wdv of assets and charge depreciation on balance amount
If the sum received is greater than wdv of block of assets, treatment is same as above.
In other case, deduct the amount received from insurance company from the wdv of assets and charge depreciation on balance amount
Rupesh Jain
(Expert)
19 August 2013
if plant & machinery is totally loss then it will taxable if the block is empty after
the loss assets
other wise it will deducted out of repair bill of machinery
the loss assets
other wise it will deducted out of repair bill of machinery
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