Accidental claim
This query is : Resolved
17 August 2017
Dear sir
How is the treatment for claim received from insurance company for the accident and the claim received by the daughter in the way of Fixed deposit after 18 years with interest. but Tax deducted on claim amount.
And what return file By the daughter for Claiming the TDS amuont and what income shows in the return.
total Claim amount or Interest amount .
please Reply Fast
How is the treatment for claim received from insurance company for the accident and the claim received by the daughter in the way of Fixed deposit after 18 years with interest. but Tax deducted on claim amount.
And what return file By the daughter for Claiming the TDS amuont and what income shows in the return.
total Claim amount or Interest amount .
please Reply Fast
17 August 2017
There are two questions in your query:
1) Whether insurance claim settlement is taxable?
This is not an income per se but the amount is of non income nature , i.e. it does not involve earnings whatsoever or transfer of any capital asset.
So, the claim is not taxable
1) Whether insurance claim settlement is taxable?
This is not an income per se but the amount is of non income nature , i.e. it does not involve earnings whatsoever or transfer of any capital asset.
So, the claim is not taxable
17 August 2017
2) Settlement received as FD with Interest after 18 years is taxable?
The point to be noted here is that the Interest thing or the FD thing is not decided by the recipient. The claim was delayed for 18 years and as a result the compensation is given as FD with interest. This interest will also forms part of the Settlement claim and therefore, not taxable as income
The point to be noted here is that the Interest thing or the FD thing is not decided by the recipient. The claim was delayed for 18 years and as a result the compensation is given as FD with interest. This interest will also forms part of the Settlement claim and therefore, not taxable as income
17 August 2017
However note that from the date of receipt any income by way of interest or investment of the settlement money thus received will be fully taxable in the hands of recipient
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