Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Treatment of insurance claim received abroad

Save Share

This query is : Resolved

Anand Manpuria (Querist)
Follow

15 December 2012 one resident individual (indian national) received an insurance claim of euro 2500 on missing of luggage in france (europe). The insurance claim is paid by the hotel authority (from where the luggage was missed)directly to the bank account of that individual.
Is this income (amt recd. from insurance claim) is taxable in india? and if taxable under which head?

Mohit Naithani

Mohit Naithani (Expert)
Follow

15 December 2012 Any profit arrise (claim - loss = Profit) from insurance claim recv by assessee is taxable as follow:

capital assest - Capital Gain.
Business Loss (eg stock) - Business Income.
Standing Crop - Agriculture Income Exempt.

its not taxable if agt any assest of personal effect.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

15 December 2012 If the luggage which was lost is not a capital asset, then nothing is taxable. The personal assets...like clothes, lap top etc. do not fall under capital asset and hence insurance claim is not taxable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now