https://www.taxtmi.com/caselaws?id=781941 Severance compensation received on cessation of employment was treated as taxable profits in lieu of salary because it fell within the express scope of section 17(3)(iii), which covers amounts received from an employer or former employer after employment ends. The earlier view treating such compensation as a capital receipt was distinguished as applying to the pre-amendment position, while the post-01.04.2002 language of the provision materially widened the charge. As the payment was linked to termination of employment and there was no evidence that it was gratuitous or outside the employment nexus, the receipt was held taxable and not a capital receipt exempt from tax. en-us Wed, 19 Nov 2025 00:00:00 +0530 Sat, 22 Nov 2025 07:36:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=781941 Severance compensation received on cessation of employment was treated as taxable profits in lieu of salary because it fell within the express scope of section 17(3)(iii), which covers amounts received from an employer or former employer after employment ends. The earlier view treating such compensation as a capital receipt was distinguished as applying to the pre-amendment position, while the post-01.04.2002 language of the provision materially widened the charge. As the payment was linked to termination of employment and there was no evidence that it was gratuitous or outside the employment nexus, the receipt was held taxable and not a capital receipt exempt from tax. Case-Laws Income Tax Wed, 19 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=781941