however payments made to any Assessee in connection with the Bhopal gas leak disaster to the extent he has been allowed a deduction under the act on account of any loss or damage caused to him by such disaster will not be exempted.
what that means?
If full amount received it is not exempted or if amount received above the loss is not exempted?
Menu
Payments to Bhopal gas victims
Replies (1)
The rule is not about whether you received "full" or "partial" compensation; it is about whether you previously claimed a tax deduction for the underlying loss.
-
If you never claimed a tax deduction for the loss: The entire compensation is typically exempt.
-
If you did claim a tax deduction for the loss: Only the portion of the compensation equal to the deduction you already received is taxable (to "recover" that tax benefit). Any compensation received above that amount remains exempt.
Recent Topic
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
- Dividend Reporting
- Real operational bottlenecks after firms use Tally
- Purchase return under gst
- Long Term Capital Loss - cannot be carried forward
- Cross-utilization of ITC between Trading and Resta
- Form 121 eligibility for non deduction of TDS for
Related Topics
CAclubindia
