Receipt From LIC
This query is : Resolved
15 December 2008
Whether receipt from LIC on death of the insured by the nominee is capital receipt or revenue receipt ?
15 December 2008
Itis just exempt from tax. Let us not bother whether it is of capital or revenue nature
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.
16 December 2008
Exempted from tax. Pl refer section 10 (10D) of the income tax act,1961.
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