X has received Rs. 2,00,000 from Tea Board on account of replacement of tea bushes which has been destroyed due to fire.
Will the compensation received for replacement of tea bushes be fully taxable or fully exempt?? (S. 10(1))
2 Replies
K Laxmisha Rao
(32 Points)
Replied 30 August 2017
Tea bushes are capital asset and Compensation received is not an income under section 2(24) and hence is not chargeable to tax under section 28 i.e under Profits and Gains from Business or Profession.
K Laxmisha Rao
(32 Points)
Replied 30 August 2017
Under section 45, only insurance on capital asset is covered, as tea bushes are not capital asset in Accordance with definition of IT Act, compensation received is not taxable under head Capital gains
Therefore no question of exemption under sec 10
Therefore no question of exemption under sec 10
Recent Topics
- Property capital gain, Bought in 2002 and sold in
- TDS Implication on Expensing Off Unrecovered Invoi
- Where can i Declare landlord share in GSTR-1
- Change of name on physical share certificates of P
- Workmen compensation insurance policy
- GST Revenue at All-Time High - A Genuine Growth or
- TDS On Purchase of Property by Firm
- Gst missing invoice in return
- Discuss and Download CA Inter Question Paper May 2
- Discuss and Download CA Final Question Paper May 2
Related Threads
Trending Online Classes
-
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
Industry Expert17 May 2025
CAclubindia
