Taxability on the amount received on the death of insured ?

The amounts received on the death of the insured are exempt from tax under section 10(10D) in the hands of the receiver.

Regards,

CA. Amol G. Kabra

Thank u very much sir................

Thank u very much sir.

A widow receied Arrears on account of 6th pay commission  on the behalf of her husband . whether such income in the hand of wife is taxable or not 

Gita,

Usually the amount received by widow is as a nominee on behalf of all legal heirs. The amount received is still taxable at the hands of the estate of the deceased where usually the widow is filing returns as the representative assessee. This is until the probate is completed on will or on intestate death. The taxes may have been deducted at source also on these arrears. The widow will file return as representative assessee and all taxes will be payable incl. on interest incomes till the assets are distributed by probate after which each legal heir is responsible for what he / she receives. Nominee is always holding funds / properties on trust and behalf of all legal heirs.The Tax on insurance receipt is not taxable. This is only for the 6th Pay commission arrears to the extent it was taxable to the deceased.