Raman and Co. a partnership firm, received ₹ 5 Lacs from an insurance co. under keyman insurance policy consequent to demise of partner Pramod. The amount of premium ₹ 2,30,000 paid earlier was claimed as deduction u/s 37 by the firm. The amount received from the insurance co. is:
A. Tax free u/s 10(10D)
B. Fully taxable as income
C. ₹ 2,70,000 is taxable
D. ₹ 2,30,000 is taxable
Answer:B
Raman and Co. a partnership firm, received ₹ 5 Lacs from an insurance co. under keyman insurance policy consequent to demise of partner Pramod. The amount of premium ₹ 2,30,000 paid earlier was claimed as deduction u/s 37 by the firm. The amount received from the insurance co. is:
A. Tax free u/s 10(10D) B. Fully taxable as income C. ₹ 2,70,000 is taxable D. ₹ 2,30,000 is taxable