Riot compensation tax liabilities

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2016 Hi,

My mother has received a sum of INR 5 lac (in FY15-16) from Central Govt. for compensation 1984 anti sikh riot and she is a govt employee in delhi.
So I want to know in her ITR return FY 15-16 is this compensation income is tax free? and do we have to declare this income in ITR return FY15-16? if yes so which u/s we can get tax exemption for this?

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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30 July 2016 Could you please provide the details of riot compensation. That is....what is the damage against which the amount is received?

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Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2016 Hi,

I have news details for the riot compensation details and my father lost his life in this riots.

Riots compensation in News:-
http://www.livemint.com/Politics/RdZDthooaeYua2ZTalhUhO/Immediately-disburse-Rs5-lakh-compensation-to-kin-of-1984-ri.html

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CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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30 July 2016 Sorry to hear this.

Death compensation does not come under the purview of income at all. Hence, there is no separate exemption specified anywhere in the Income Tax Law.

Such receipt is not taxable.

Querist : Anonymous

Querist : Anonymous (Querist)

30 July 2016 Thank You Ram Pavan, So I am not going to show this amount in her tax return.

CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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30 July 2016 You need not show in the return as per law. However, just to make it public mention the same under "EI" schedule at exempted income. This is as per your discretion.

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CA CMA CS Ram Pavan Kumar Melam

CA CMA CS Ram Pavan Kumar Melam (Expert)
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30 July 2016 If you find my reply useful, please score me by selecting like user option.

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