<h1>Amendment Expands Taxability of Compensation from Business and Employment Contracts u/ss 28 and 56, Effective April 2019.</h1> The proposed amendment to the tax law aims to expand the taxability of compensation related to business and employment. Currently, section 28 of the Act only taxes certain types of compensation as business income, which limits its scope and results in revenue loss. The amendment will make any compensation received or receivable, whether revenue or capital, due to the termination or modification of business contracts taxable as business income. Similarly, compensation related to employment contracts will be taxable under section 56. These changes will be effective from April 1, 2019, and applicable for the assessment year 2019-20 onwards.