Suggest tax planning

(i) Yes insurance compensation money is exempt u/s 10(10D)

(ii) Yes such interest is taxable u/h "IOS"

(iii) Yes she can claim deduction u/s 80U

Yes But does the section 10(10D) say about accident claim received . I thinks it speaks about only maturity of life insurance...

HI,

1. As per Section 10(10D) of the Income Tax Act, 1961, any sum received under a Life Insurance Policy, including the sum allocated by way of bonus on such policy is exempt from tax. However if claim received on death that is always tax free under section10 (10D).

2. In case of taxable dividend income and interest from securities, any reasonable sum paid by way of remuneration or commission for the purpose of realizing such income including interest on borrowed capital if such borrowed capital is used for making investment in shares or securities.

In case of any expenditure other than capital expenditure or personal expenditure which has been incurred wholly, necessarily and exclusively for earning income like revenue expenditure, such expenditure will also be allowed as a deduction.

So it can be claimed as deduction.

3. 80 U can be claimed always in any case..

Regards,

Sourabh jain