Tax exemptions for compensation paid to employee

While I was constructing a house a labourer died unfourtunately . The family filed a employee compensation case and I settled the matter in Lok Adalath for a amount of 5Lakhs.

I paid this money from my own pocket..

Can i clam this money paid as Loss in my income tax?

Reply Follow

1 Replies

(Guest)

Any cost paid on account of negligence of the property owner does not attract any tax exemption. This is your personal loss, not a permissible deduction from income of the year.