Taxability of non compete fees

[pankaj jhawar]

How the non compete fees is taxable? wheher the same can be amortised. What are the relevant case law and section for the same.

AI Summary

Non-Compete Fees: Taxability and Amortization Explored; Refer to 2008 Madhya Pradesh HC Decision for Guidance A query was raised regarding the taxability of non-compete fees, questioning whether they can be amortized and seeking relevant case law and sections. A response indicated that non-compete fees might be treated as capital receipts, but the nature of the income could depend on the contract's specifics. The response also referenced a decision by the Madhya Pradesh High Court from 2008 for further guidance.