I am a senior citizen 70 years old and have been fighting case in court with my employer for wrongful termination from last 12 years.Recently settlement took place and the court awarded me compensation ( not salary ) . Kindly let me know whether the compensation is taxable or not.
If yes according to IT laws it is revenue or capital receipt.
Your reply will be highly appreciated as am in great need.
Senior Citizen Seeks Tax Advice on Court-Ordered Compensation for Wrongful Termination: Revenue or Capital Receipt? A senior citizen, aged 70, has been involved in a 12-year legal battle with their employer over wrongful termination. A recent court settlement awarded them compensation, not salary. They seek advice on whether this compensation is taxable under income tax laws and whether it should be classified as a revenue or capital receipt. The individual is in urgent need of guidance on the tax implications of this compensation. (AI Summary)
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