I have received 35000 rs. of crop insurance.
what is the tax treatment??
Kapadia Pravin
(17249 Points)
Replied 28 August 2019
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 28 August 2019
1. There is no clear explanation with respect to whether crop insurance is taxable or not.
2. But however the same may not be taxable due to its nature of insurance. Crop insurance covers the loss of farmers due to the failure of their crops.
3. This again will come under agricultural income and taxing the same might be harsh in the hands of farmers. Hence, even though there is no clear explanation or provision explaining the same.
4. Keeping the nature of income in mind the same might be exempted.
Please correct me if the above interpretation has an alternative view.
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