https://www.taxtmi.com/caselaws?id=186451 Payments received from an employer are treated as income under Explanation 2 to section 7(1) of the Indian Income-tax Act, 1922 unless they are made solely as compensation for loss of employment and not as remuneration for past services. On the facts stated, the payment was linked to a later mutual termination arrangement, after objections to an earlier notice were entertained, and the operative notice itself recorded termination pursuant to that settlement. The amount was therefore characterised as compensation for surrender of employment rights rather than salary or other employment remuneration. The receipt was held to be capital in nature and not chargeable as revenue income. en-us Tue, 01 Aug 1961 00:00:00 +0530 Mon, 19 Sep 2016 15:36:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=186451 Payments received from an employer are treated as income under Explanation 2 to section 7(1) of the Indian Income-tax Act, 1922 unless they are made solely as compensation for loss of employment and not as remuneration for past services. On the facts stated, the payment was linked to a later mutual termination arrangement, after objections to an earlier notice were entertained, and the operative notice itself recorded termination pursuant to that settlement. The amount was therefore characterised as compensation for surrender of employment rights rather than salary or other employment remuneration. The receipt was held to be capital in nature and not chargeable as revenue income. Case-Laws Income Tax Tue, 01 Aug 1961 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=186451