Blast victims be exempted from tax: Somaiya

Mumbai, July 21 (UNI) Convenor of the BJP investors Cell Kirit Somaiya today demanded that the compensation received by the serial bomb blast victims of last week be exempted from Income Tax.

In a letter to Chief Income Tax Commissioner of Mumbai Indira Bhargav he said that under the present provisions of Income Tax Act this amount would become taxable and the affected family will lose 33 per cent of the support they received by way of donation or compensation.

He said that the present provisions in section 10 or 56 of the Income Tax Act, which mainly covers gift, is not clear whether such amount will be treated as taxable income or not.

According to him the family of a dead person may get about Rs 10 lakhs as compensation from Railways, State Government and claim tribunal and the injured may get up to four lakhs rupees.

Keeping in mind the status of the families of the affected people, Mr Somaiya requested the Commissioner to exempt from tax the entire amount received by Mumbai bomb blast victims and affected families.

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