https://www.taxtmi.com/caselaws?id=6894 A lump-sum payment made to induce an employee to join service was not compensation for loss of employment, because that exclusion applies only where there is prior employment, termination, and a causal nexus with the loss of that employment. The payment also was not wholly salary, since part of it was intended to secure future services and to offset benefits lost on leaving former employment, giving that portion a capital character. The balance was linked to service under the payer and formed part of emoluments. The amount was therefore apportioned equally between capital receipt and salary, with tax deduction at source inapplicable to the capital half and exigible on the salary half. en-us Wed, 01 Mar 1967 00:00:00 +0530 Sat, 07 Feb 2009 07:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6894 A lump-sum payment made to induce an employee to join service was not compensation for loss of employment, because that exclusion applies only where there is prior employment, termination, and a causal nexus with the loss of that employment. The payment also was not wholly salary, since part of it was intended to secure future services and to offset benefits lost on leaving former employment, giving that portion a capital character. The balance was linked to service under the payer and formed part of emoluments. The amount was therefore apportioned equally between capital receipt and salary, with tax deduction at source inapplicable to the capital half and exigible on the salary half. Case-Laws Income Tax Wed, 01 Mar 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6894