Section 45(1A) - Capital Gains on Insurance Claims For Damage or Destruction of Capital Asset

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..... hquake or other convulsion of nature, or Riot or civil disturbance or Accidental fire or explosion or Action by an enemy or action taken in combating an enemy then any profits or gains arising from such money or the FMV of other assets received from insurance company shall be deemed to be sales consideration for computing capital gains. Capital gains shall be taxable in the year of receipt of insu .....

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..... truction. If stock insurance and on loss of stock insurance, compensation received, then this section not applicable as capital asset does not include stock in trade. SUMMARY OF SECTION Asset Destroyed :- Capital asset Due to Natural calamities, accidental fire, riots, action of enemy - Insurance Compensation taxable u/s 45(1A) Other causes like theft - Section 45(1A) not applicable. 2. Stock-in-t .....

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