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Urgent : tax treatment of insurance claim

Tax queries 313 views 1 replies

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

Replies (1)
The life insurance claim receipts are not taxable in the hands of the family of the deceased under section 10(10)D of income tax act.
Mrs. A should file ITR 1 and show the insurance claim receipts under exempt income u/s 10(10d) and claim refund of TDS deducted.


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