Urgent : tax treatment of insurance claim

Suraj Agarwal (Self Practitioner in Income Tax & GST)   (782 Points)

25 July 2018  

Hello Everyone,

There is a case.........Mr A is expired in a car accident. The Insurance Company disburse a Claim Amount of Rs.1100000/- in that case. This amount is deposited to the court as this amount will be distributed amoung all survivors by the court decision. But this claim amount of Rs.11,00,000/- is displayed in Form 26AS of Mrs A with proper TDS deduction from the Insurance Company in the F/y 2017-18.

Now my question is that Mrs A has not received any sum in her bank account till 31.03.2018. Then what should be tax treatment of this claim amount of Rs.11,00,000/- in the hand of Mrs. A for the F/y 2018-19  ??

Whether she may skip this income from her ITR or she has to include this income in her ITR to match her Form 26AS for the F/y 2017-18.

Kindly give your reply urgently, because ITR filling last date is near to end.

Thanks