12 December 2018
Mr x while travelling in bus met with an accident. Front teeth and chin were seriously damaged and hospitalised. He claim compensation. For which court ordered to give compensation of Rs. 600000 as compensation and Rs.314200 as interest on compensation during the Financial year 2017-18 to unted insurance compensation. The amount was received by the assessee during 2017-188. Give me the tax impact
14 December 2018
The amount received as compensation is a capital receipt not liable to tax. The amount received as interest on compensation shall be taxable (without any deduction) [S.145A had been replaced.]
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