Motor claim insurance received
This query is : Resolved
28 July 2012
It can be treated Income other sources
28 July 2012
It will be incorrect to state this gain as income from other source.
this gain will be treated as capital gain.
this gain will be short term capital gain u/s 45(1A) read with section 50.
this gain will be treated as capital gain.
this gain will be short term capital gain u/s 45(1A) read with section 50.
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.
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.
28 July 2012
If motor car is a business asset ( depreciable asset )then excess claim received shall be "Short term capital gain".
Kind regards,
Neha D.
Kind regards,
Neha D.
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