https://www.taxtmi.com/caselaws?id=165084 A payment made on termination of employment is not taxable as salary or profits in lieu of salary where it is truly compensation for loss of employment and not remuneration for past services. The Bombay High Court held that the settlement sum was paid because the service contract ended prematurely, and its character was not altered by the employee's surrender of claims or agreement not to take prejudicial employment. Under the salary provision, compensation solely for loss of employment fell outside the charge to tax, so the receipt was treated as non-taxable capital compensation. en-us Fri, 26 Jun 1959 00:00:00 +0530 Thu, 08 May 2014 16:44:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=165084 A payment made on termination of employment is not taxable as salary or profits in lieu of salary where it is truly compensation for loss of employment and not remuneration for past services. The Bombay High Court held that the settlement sum was paid because the service contract ended prematurely, and its character was not altered by the employee's surrender of claims or agreement not to take prejudicial employment. Under the salary provision, compensation solely for loss of employment fell outside the charge to tax, so the receipt was treated as non-taxable capital compensation. Case-Laws Income Tax Fri, 26 Jun 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=165084