Receipt From LIC
This query is : Resolved
CA ARVIND TIWARI
(Querist)
15 December 2008
Whether receipt from LIC on death of the insured person by the nominee of the insured is Capital receipt or Revenue receipt for under IT, Act ?
15 December 2008
Already replied
Ravikumar.G
(Expert)
15 December 2008
Not taxable in the hands of nominee.
Ravikumar.G
(Expert)
15 December 2008
ONE of the basic principles to decide the taxability of a receipt under the Income-tax Act, 1961 is to distinguish between capital and revenue receipts. The distinction between the two is vital because capital receipts are exempt from tax unless specifically taxable — capital gains, for instance.
Conversely, revenue receipts are taxable unless expressly exempt in accordance with the provisions of law. The Act does not define `capital receipt' and `revenue receipt', but then one has to depend on the natural meaning of the concepts and also draw support from various case laws on the subject.
Conversely, revenue receipts are taxable unless expressly exempt in accordance with the provisions of law. The Act does not define `capital receipt' and `revenue receipt', but then one has to depend on the natural meaning of the concepts and also draw support from various case laws on the subject.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Gst credit note by supplier
- Reward for festival
- 18% Rent a cab
- Missed uploading GST Invoice
- Movement of goods by packers and movers - type of sale - Reg.
- Closer of business and itc of capital goods
- Appointment of Auditor By Form ADT-1
- Accounting Treatment of Civil work to install PORTA Cabin for office use
- TDS Return Statement Status
- Gratuity paid to legal heir above 20 lakh is taxable or not
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
- How to get money back from delisted company
- ITC not to be taken in accounts & GSTR-3B
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
