18 February 2015
I HAVE RECEIVED COMPENSATION UNDER MOTOR TRIBUNAL ACCIDENT FROM INSURANCE COMPANY OF RS 10 LAKH. I GOT 70% PERMANENT DISABILITY. COMPENSATION IS AWARDED 3.66 LAKH WITH 9% INTEREST. WHAT WOULD BE TAXABILITY?
18 February 2015
The compensation received under accidental claim should not be taxable as it is a capital receipt and there is no specific charging section under the provisions of Income Tax Act 1961 even. However the interest received thereof should be chargeable to tax as income from other sources.
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