27 July 2015
No, it is exempt as subject to section 10(10BC)
please refer below section......
Compensation on account of any disaster [Section 10(10BC)] Any amount received from the Central Government or State Government or a Local Authority by an individual or his legal heirs as compensation on account of any disaster is exempt from tax. However, no deduction is available in respect of the amount received or receivable to the extent such individual or his legal heirs has been allowed a deduction under the Act on account of loss or damage caused due to such disaster. Disaster here means any disaster due to any natural or man-made causes or by accident/negligence which results in substantial loss of human life odamage to property or environment and the magnitude of such disaster is beyond coping capacity of community of the affected area
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