Tds on insurance claim in bike showroom

[SANJAY NAYAK]

Dear Sir

I want to know how to treat tds on insurance claim on bike reparing. Kindly suggest

Thaking You

Regards

S K Nayak

AI Summary

Accountant Questions 1% TDS Deduction on Insurance Claims; Advised It's Typically on Interest, Not Compensation. An accountant from a bike showroom, dealing with insurance claims for repairs, inquired about the deduction of 1% TDS by insurance companies on such claims. The accountant sought clarification on the applicable tax section. Respondents advised that TDS is typically applicable only on interest received for delayed compensation, not on the compensation itself. They suggested consulting the insurance company for the basis of TDS deduction, as the showroom merely transfers the received amount to the insured without profit. The discussion concluded with a suggestion to seek further clarification from the insurance provider.