28 July 2012
Motor car is an asset of Personal Effect (If not use in Business & Proff). Hence any insurance claim recv agt damage, destruction of such property is not taxable under any head of Income.
In case of any other assets Sec 45(1A) is applicable if the following condition are satisfied : 1. Compensation recv due to damage and destruction of an assets
2. Damage or destruction is due to (i) Nature, (ii) Riot etc (iii) Enemy Action and (iv) accidental fire explosion.
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