Vipin Upadhyay Explains Tax and Insurance Treatment for High-Value Art & Jewellery Collections of Ultra-HNIs

Vipin Upadhyay has shared expert insights on the insurance and tax treatment of high-value art and jewellery collections for ultra-high-net-worth individuals (UHNI), in a feature published on Moneycontrol.

Upadhyay explained, “Insurance payouts are not taxable if proceeds are received on loss or destruction of privately held high-value personal collections. However, the claim amount would be taxable if these assets are held as stock-in-trade or the claim represents loss of profits rather than loss of the asset itself.”

He further clarified the treatment for businesses, noting that insurance payouts from losses of high-value collections are generally treated as capital assets. “As a rule, capital receipts apply, since the payment merely indemnifies the owner for loss of a capital asset,” said the tax analyst.

For the full insights, read the Moneycontrol feature: https://www.moneycontrol.com/news/business/personal-finance/how-insurers-underwrite-high-value-art-and-jewellery-collections-of-ultra-hnis-risks-premiums-claims-and-tax-treatment-13871373.html