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Query Details

Asked by Pankaj on :Jun. 14, 2018

Hello everyoneI received compensation of 3 lakhs …

Hello everyoneI received compensation of 3 lakhs from the trust which is working on the disaster r…

Hello everyone

I received compensation of 3 lakhs from the trust which is working on the disaster relief field. Do I need to pay tax on such compensation?

0

Jeeba Jun. 14, 2018

Yes, you have to pay tax on such amount received as a compensation.
Section 10(10BC) any compensation received on the account of disaster from central government, state government/local authority is exempt from tax.

Since compensation received from trust does not qualify for the exemption, you have to pay tax on such amount of 300000.

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