WDV of vehicle as on 31/3/2018 is Rs.8,89,950. The vehicle was completely destroyed by flood in August 2018. Insurance claim received in full Rs.8,99,000. What is the treatment of above under income tax and tax implication.
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Loss of vehicle by flood & taxability of insurance claim received
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Reduce insurance claim from WDV of asset
i.e 899000-889950 difference of Rs. 9050.00 is treated as STCG...
i.e 899000-889950 difference of Rs. 9050.00 is treated as STCG...
It was decided by Chandigarh tribunal in (2004) 3 S.O.T. 521/ 83 T.T.J. 1057 ....
if the whole of capital assets in a block have been sold in a year and some gain arises after the sale such gain shall not be treated as short term capital gain if some new asset has been purchased within the same year in the same block of assets and the total value of new and old capital assets in the same block is more than the sale consideration of the assets sold, since the block of asset does not cease to exist in such case as is required u/s 50(2).
if the whole of capital assets in a block have been sold in a year and some gain arises after the sale such gain shall not be treated as short term capital gain if some new asset has been purchased within the same year in the same block of assets and the total value of new and old capital assets in the same block is more than the sale consideration of the assets sold, since the block of asset does not cease to exist in such case as is required u/s 50(2).
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