Tax alert: Provision by insurance companies for unsettled outstanding claims and IBNR, deductible has been saved
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Tax alert: Provision by insurance companies for unsettled outstanding claims and IBNR, deductible
15 July 2024
The Delhi High Court, based on facts, has held that the provision for unsettled outstanding claim and incurred but not reported (IBNR) claim by an insurance company could not be construed as contingent liability and therefore, is allowable as deduction under section 37 of the Income-tax Act, 1961.