I received compensation from " The oriental insurance company ltd, kurnool dist” ,under sec 166 of M V Act towards compensation Rs 2,60,000 from the injuries the in a motor vehicle accident.
Please help me, this amounts comes under Tax Exemption or not, if exempted under income tax rules, kindly specify the section.
Thanks in advance for your help.
IMHO compensation received due to an accident can be taxable if there is no disablement and shall be tax free if there is permanent or temporary disablement so its treated as capital receipt. You can also check this link /experts/taxability-of-claim-receieved-under-motor-accident-6056.asp and /experts/interest-on-accident-compensation-is-taxable-or-not--1695379.asp .
B Thejas and Associates
Bengaluru
CA Foundation
View Details
Saini Pati Shah & Co LLP, Chartered Accountants
Mumbai
CA Final
View Details
CCI
Pro
CAclubindia
