Section 45(1a) ?

This query is : Resolved 

10 August 2010
Section 45(1a) "insurance claim recevied in regards to damage or destruction of capital asset"

plz explain this in easy way in ponts
thanks

10 August 2010 In case an asset has been severally damaged or destructed and the same was covered under insurance and claim received from insurance company will be deemed to be sale consideration for the asset destroyed.

19 January 2013 As far as I read the section, it says Profits or Gains arising from such receipt.

i.e. Consideration received Less (W.D.V.) Cost of Asset as per Books will be the profits which will be taxable, since depreciation was already provided on same.




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