compensatin from employer

[varinder singh]

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.

AI Summary

Taxability of compensation in wrongful termination settlements: whether awarded amounts are treated as revenue or capital receipts under income tax. Taxability of court awarded compensation for wrongful termination: whether amounts received under a settlement labeled as compensation (not salary) are taxable under income tax law and whether they should be characterised as a revenue receipt or a capital receipt.