Treatment of insurance claim received abroad
This query is : Resolved
15 December 2012
one resident individual (indian national) received an insurance claim of euro 2500 on missing of luggage in france (europe). The insurance claim is paid by the hotel authority (from where the luggage was missed)directly to the bank account of that individual.
Is this income (amt recd. from insurance claim) is taxable in india? and if taxable under which head?
Is this income (amt recd. from insurance claim) is taxable in india? and if taxable under which head?
15 December 2012
Any profit arrise (claim - loss = Profit) from insurance claim recv by assessee is taxable as follow:
capital assest - Capital Gain.
Business Loss (eg stock) - Business Income.
Standing Crop - Agriculture Income Exempt.
its not taxable if agt any assest of personal effect.
capital assest - Capital Gain.
Business Loss (eg stock) - Business Income.
Standing Crop - Agriculture Income Exempt.
its not taxable if agt any assest of personal effect.
15 December 2012
If the luggage which was lost is not a capital asset, then nothing is taxable. The personal assets...like clothes, lap top etc. do not fall under capital asset and hence insurance claim is not taxable.
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