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Loss due to fire

1880 views 5 replies

Ankush

Student

1374 Points Joined April 2010

Can you claim loss due to fire in case of income tax if no insurance claim is received?

Replies (5)

Guest

https://indiankanoon.org/doc/1118122/

REFER TO THIS LINK

Guest

This loss due to fire treated as capital loss. therefore, not incidental to business, and are added back."

sagar parakh

Group 2 Cleared

317 Points Joined November 2012

If neither any asset nor any money is received against loss of asset from insurance company company,then there would be a capital loss and which has no tax treatment.

Ankush

Student

1374 Points Joined April 2010

Thank you for your answer. But what if property worth 1 lakh is destroyed and claim received is 10 thousand. Can we claim the balance loss?

Labhansh Financial

In Practice

33 Points Joined February 2017

Originally posted by : Anurag
	Thank you for your answer. But what if property worth 1 lakh is destroyed and claim received is 10 thousand. Can we claim the balance loss?

By "Property" if you mean a capital asset, then you cannot claim any deduction at all. However if there is a loss of stock to the extent not covered by insurance then you can claim deduction. Read the entire judgement linked here

https://indiankanoon.org/doc/1118122/