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Car insurane claim received
What is the tax treatment for Car Insurance Claim received for Proprietary business of Car rental or is it exempt under any section?
Replies (6)
Isn't it compensation received against any loss earlier?
Yes...But if loss is not recognised in books or claim received exceeds the loss or expense, then will it be treated under Capital Gain head or adjusted with Capital Account of the Proprietor?
Usually, the compensation never exceeds loss; but in your case it should be taxable under IFOS.
Will it be having any effect on Value of Car in Balance Sheet?
No. .
AGREE WITH SIR ,,,,,,,,IT IS TAXABLE AND YOU CAN SHOW UNDER IFOS,,,,,,OTHER HAND IT NOT EFFECT CAR VALUE
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