14 May 2012
A.Y.:2012-2013 Mr. A. Age:21 years (Handicapped)
In year 2009, Mr A suffering Accident & Lost your Leg, He claimed Insurance & Paid insurance Amount but Mr.A claimed Interest Amount, As Per Court Order, At the time of 2011 , Insurance company paid Rs.300000/- Interest & Deducted TDS so, This Income totally taxable or Any Exemption as per Court Order, Please Guide Me,
Total Income - Rs.300000 IT Limit - Rs.180000 As per 80U - Rs.50000 So, After deduction Rs.70000.00 Taxable Income
Correct or Wrong or Any Special provision related Court Decision, Guide me
15 May 2012
Proceeds of Insurance are tax free but the interest as per court order is not tax free. So in your case, there shall be a tax of Rs. 7210 i.e. 10.3% on 70000.00
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