Taxing of Personal Accident Insurance

This query is : Resolved

CA Gunjan H Shah (Querist)
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07 January 2011 Premium paid for PA is not allowed as deduction.

When a person is sick and gets claim amount of Personal Accident, will he/she be liable to pay Income Tax.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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07 January 2011 That income may be taxable under the head income from other sources.

CA Gunjan H Shah

CA Gunjan H Shah (Querist)
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08 January 2011 Please provide me some provision or section or circular.... to confirm it. Thank you for reply

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Guest

Guest (Expert)

08 January 2011 Insurance claim is not income and therefore, it is not liable for incometax

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 January 2011 Receipt from personal accident claim is not exempted u/s 10(10D)

Guest

Guest (Expert)

10 January 2011 There is supreme court on insurance claim and such insurance claim is not at all income and hence it does not require exemption u/s 10.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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10 January 2011 Dear Moondraji
Kindly share the same here. I am restating that this is personal accident claim and not normal insurance claim which is exempt u/s 10(10D).

Guest

Guest (Expert)

10 January 2011 Dear,

will you please clarify for the deductions you will allow from the claim amount (gross receipt) on account of cost of one's sickness, trouble and mental tension etc for making calculations of income from insurance claim ? I think, your calculation will give you reply.

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 January 2011 The expenses incurred to get sick if any could be claimed as expenses from accident policy claim.

The expenses you are telling is to be claimed if claim is received from mediclaim.

Also accident policy is like a loss of profit policy and not in the nature of insurance policy.

Guest

Guest (Expert)

11 January 2011 No dear, I am not agree to your views. However, mind that the getting insured is not for earning the profit. No one can claculate the cost of trouble and problems faced due to an accident.

Guest

Guest (Expert)

11 January 2011 No dear, I am not agree to your views. However, mind that the getting insured is not for earning the profit. No one can calculate the cost of trouble and problems faced due to an accident.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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11 January 2011 The accident polciy is like a loss of profit policy i. e. the monetary loss occured during the accident or sickness.

Also no one actually calculate the cost of trouble and problems faced due to an accident.

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