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T. Banusekar

IN TAMIL Nadu after the recent floods the State Government allowed flood relief ranging from Rs 1,000 to Rs 2,000. This has been received in some cases even by professionals, Government servants etc.

Will this sum be taxable in the hands of the recipient? If the answer is in the affirmative, will the recipient be able to claim the expenses incurred and the losses occasioned as a result of the flood as a deduction against the same?

V. Rajeshwari

Reply

The sums received by way of flood relief will not be income within the meaning of Section 2(24) of the Act and hence will not be taxable in the hands of the recipient. The question of claiming a deduction in respect of the losses and expenses occasioned as a result of the flood will also therefore not arise.

Mail your queries to taxtalk@thehindu.co.in or by post to `Tax Talk', Business Line, Kasturi Buildings, 859, Anna Salai, Chennai-600002.

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