Mr Ram Manohar Karta of a family business dies in air crash

cbse
formsoforganisations

#1

Mr Ram Manohar Karta of a family business dies in air crash. His son received the amount of
compensation from the insurance company. In this case, can this income be treated as HUF income?


#2

No, Insurance compensation cannot be treated as the income. It is an individual asset. On the death of Mr Ram this money should be in the hands of his son as this will be a compensation of loss of his father.