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Amount received for not filing criminal case

Others 166 views 9 replies

nitin mehta

prop

28 Points Joined March 2012

if family of victim in murder case receives some amount from accused person for not filing the criminal case before honorable court , does this amount will be treated as taxable income under other sources of income?

Replies (9)

Rahul Prasad

CA Student

1683 Points Joined September 2012

it should not be taken as income hence should not treated taxable income . let's take second opinion also.

nitin mehta

prop

28 Points Joined March 2012

thx rahul sir

RAMAKRISHNAN R

INCOME TAX OFFICER

1736 Points Joined February 2014

yes... it will be chargeable to tax...

nitin mehta

prop

28 Points Joined March 2012

@ ramakrishnan R - under other sources head of income ???

Rahul Prasad

CA Student

1683 Points Joined September 2012

sir it's not normal compensation it's against the death and the intention crime.since as we know that claim received form insurance company for accidental death is exempt . the. how it can not be. how I will welcome any reference source if you have for taxability .

Nikhil Kaushik

Fellow CA

86871 Points Joined June 2009

this should be helpful https://www.livelaw.in/compensation-awarded-mact-not-income-cannot-subjected-tds-income-tax-madras-hc/

RAMAKRISHNAN R

INCOME TAX OFFICER

1736 Points Joined February 2014

compensation awarded by insurance company or court is exempt.. subject to conditions...

even .. compensation received for non participation is taxed as business income...

similarly, in this case it ll be taxed under other sources...

if I'm wrong pls enlighten me referring the suitable section

nitin mehta

prop

28 Points Joined March 2012

sir, ins compensation is result of legal proceedings but in present case family of victim gets amount from accused person for not intiating legal proceedings.