₹2,50,000 received by Mr. Rohan from Central Government as compensation on account of disaster taken place in Uttrakhand.
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2017
₹2,50,000 received by Mr. Rohan from Central Government as compensation on account of disaster taken place in Uttrakhand.
Answer & Explanation:
As per section 10(10BC), any amount received or receivable as compensation by an individual or his/her legal heir on account of any disaster from the Central Government/ State Government or a local authority is exempt from tax, except to the extent such individual or legal heir has already been allowed a deduction under this Act on account of such loss or damage caused by such disaster. Accordingly, the amount of ₹2,50,000 received by Mr. Rohan from Central Government as compensation on account of disaster taken place in Uttrakhand in exempt from tax.
Topics: Income Tax Act, 1961
Related Questions in this Topic
- Explain meaning of Reverse Merger. List down the benefits available in it.
- A Ltd. has some plant and machinery in a block of assets whose written down value on 1st April, 2020 was ₹50,00,000. The...
- Sangeeth acquired a house property for ₹2,00,000 on 10th June, 1976. He incurred the following expenses to make some add...
- Incomes earned during a previous year are always taxable in the assessment year. Do you agree? Explain with reasons.
- From the following information given by Duke Ltd., for the Previous Year 2020-21, compute the tax payable by it for the ...