Recevied Accident claim
This query is : Resolved
10 December 2009
Dear Experts,
-Mr.X is in receipt of accident claim against the suite file,(suite was file against the Sate Govt.) from Govt.
-The amount is received after 10 long years of fight.
-The said amount is received partly by cheque and partly in form of Fixed Deposite maturing after six years.
-My question: whether this will be charged to income tax??
-If yes under which Head and Why??
-Mr.X is in receipt of accident claim against the suite file,(suite was file against the Sate Govt.) from Govt.
-The amount is received after 10 long years of fight.
-The said amount is received partly by cheque and partly in form of Fixed Deposite maturing after six years.
-My question: whether this will be charged to income tax??
-If yes under which Head and Why??
10 December 2009
No income tax will be charged on this amount. It is like a capital receipt.
However; FD interest received in future will be taxable.
CA Rakhecha
Surat
However; FD interest received in future will be taxable.
CA Rakhecha
Surat
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