TaxTMI 
TaxTMI 
Dear Sir
I want to know how to treat tds on insurance claim on bike reparing. Kindly suggest
Thaking You
Regards
S K Nayak
Tds on insurance claim in bike showroom
21 Dec 2015 
5 Replies 
2829 Views Asked by
TDS on insurance compensation may not apply where the payment is a pure indemnity; only interest is taxable.
TDS on insurer payments for vehicle repair depends on the nature of the amount: pure compensation or indemnity without an interest or income component is not ordinarily subject to withholding, whereas any interest element or income component is subject to TDS; recipients who merely pass funds to the insured without profit should query the insurer about the basis for deduction and may seek refund or clarification if tax was withheld improperly. (AI Summary)
TDS on insurer payments for vehicle repair depends on the nature of the amount: pure compensation or indemnity without an interest or income component is not ordinarily subject to withholding, whereas any interest element or income component is subject to TDS; recipients who merely pass funds to the insured without profit should query the insurer about the basis for deduction and may seek refund or clarification if tax was withheld improperly. (AI Summary)