Hi friends,
The case is:
The Bank was cutting some charges on the amount invested by us in mutual funds which was fraud. After 3 yrs he gave us a compenstation of some money for the fraudulent act done by the bank. How will such amount will be taxed? Investment in mutual fund is our main source of income.
Compensations are tax free- cap. receipt. But how will dept. will treat ? It is a dilemma.
Hey frndz i dint recd my PCC MEMO still...i wrote in june 2009..wat to do??
If earlier u had taken deduction of bank chgs from income then amount recd now will be taxable.
if earlier no deduction was taken then in current it is not taxable
agree with mitu but can also claim relief u/s 89
No.
CAclubindia
