According the provision section -45 of Income Tax Act,1961, Any profits or gains arising from the transfer of a capital asset effected in the previous year shall save as otherwise provided in section 54,54B,54D ,54EA, 54EB, 54F, 54G,54H be chargeable to income tax under the head Capital gains and shall be deemed to be the income of the previous year in which the transfer took place.
Notwithstanding anything contained in sub-section (1) where any person receives at any time during any previous year any money or other assets under an insurance from an insurer on account of damage to or destruction of any capital asset as a result of-
(i) flood,typhoon, hurricane,cyclone, earthquake or other convulsion of nature, or
(ii) riot or civil disturbance or
(iii) accidental fire or explosion, or
(iv) action by an enemy or action taken in combating an enemy ( whether with or without a declaration of war
then any profit or gains arising from receipt of such money or other assets shall be chargeable to income tax under the head ‘ capital gains and shall be deemed to be the income of such person of the previous year in which such money or other assets was received and for the purposes of section 48 value of any money or the fair market value of other assets on the date of such receipt shall be deemed to be the full value of the consideration received or accruing as a result of the transfer of such capital assets.