is accident compensation amount is taxable?

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MOIN ALI (Querist)
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01 November 2016 a employee who revived a sum of rs 9 lakh as a accidentall compensation in f/y 15/16. now my question is amount is taxabel r exapmted. one more thing that amount he put as fix deposit in bank. tell me how can solve this problem. he had temporary injury in that accident. TDs was deducted on that FD amount.

Amol S Joglekar

Amol S Joglekar (Expert)
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01 November 2016 The claim amount is NOT taxable.
The interest on the FD made out of the amount received through accident claim is TAXABLE and subject to TDS, as per the applicable provisions of income tax act

MOIN ALI

MOIN ALI (Querist)
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01 November 2016 thank u sir

Amol S Joglekar

Amol S Joglekar (Expert)
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01 November 2016 you are most welcome.

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