Are the personal Injury settlements proceeds taxable?
I am Indian working in India and traveled to USA on a business trip. I slipped in the Ice and have a leg fracture in the the hotel. We have file a case against the hotel through an US attorney and got the damages of $xxxx as compensation. Do i nee d to discharge taxes for this money in India ?.While all my medical expenses be alreaday borne by travel insurance, I had allowances cut in my net by employer and lost several other indirect emoluments.
Answers:
If the compensation is more than your expenditure, then the amount is taxable either within India or in the US. In your case, since the insurance covered adjectives your expenses, the settlement amount is certainly taxable. If the tax on the amount have not already been deducted when funded to your depiction, you need to pay excise adding this to your income as "Income from Other sources". If tax is compensated in the US, you need not repeat the due here.
Yes.
And US taxes as well.
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Answers:
If the compensation is more than your expenditure, then the amount is taxable either within India or in the US. In your case, since the insurance covered adjectives your expenses, the settlement amount is certainly taxable. If the tax on the amount have not already been deducted when funded to your depiction, you need to pay excise adding this to your income as "Income from Other sources". If tax is compensated in the US, you need not repeat the due here.
Yes.
And US taxes as well.
Related Questions: