https://www.taxtmi.com/caselaws?id=276788 Lump sum amounts paid on termination of employment were treated as compensation for loss of employment and therefore exempt from income-tax under Explanation 2 to Section 7(1) of the Income-tax Act. The agreement's reference to "resignation" was read as a formal description of termination under pressure, not a voluntary surrender of office. Because the sums were payable separately from accrued dues for past service, they were not remuneration for services rendered. The unexpired term of the contract and surrounding circumstances showed that the payment was intended to compensate the employee for loss of future employment prospects. en-us Mon, 10 Apr 1944 00:00:00 +0630 Sat, 17 Nov 2018 13:03:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276788 Lump sum amounts paid on termination of employment were treated as compensation for loss of employment and therefore exempt from income-tax under Explanation 2 to Section 7(1) of the Income-tax Act. The agreement's reference to "resignation" was read as a formal description of termination under pressure, not a voluntary surrender of office. Because the sums were payable separately from accrued dues for past service, they were not remuneration for services rendered. The unexpired term of the contract and surrounding circumstances showed that the payment was intended to compensate the employee for loss of future employment prospects. Case-Laws Income Tax Mon, 10 Apr 1944 00:00:00 +0630 https://www.taxtmi.com/caselaws?id=276788