19 August 2013
What will be the adjustment in the income tax Act if the insurance claim received on account of fire for the plant and machinery. PLZ also refer section no.
19 August 2013
if the block of assets is empty as a fire (i.e. all the assets of the block are totally destroyed), the sum received minus wdv of block of assets should be treated as capital gain/loss as the case may be.
If the sum received is greater than wdv of block of assets, treatment is same as above.
In other case, deduct the amount received from insurance company from the wdv of assets and charge depreciation on balance amount
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