Recevied Accident claim

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Kunal (Querist)
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10 December 2009 Dear Experts,

-Mr.X is in receipt of accident claim against the suite file,(suite was file against the Sate Govt.) from Govt.

-The amount is received after 10 long years of fight.

-The said amount is received partly by cheque and partly in form of Fixed Deposite maturing after six years.

-My question: whether this will be charged to income tax??
-If yes under which Head and Why??

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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10 December 2009 No income tax will be charged on this amount. It is like a capital receipt.

However; FD interest received in future will be taxable.

CA Rakhecha
Surat