https://www.taxtmi.com/caselaws?id=795410 Voluntary ex gratia payments under an employer's retirement scheme may constitute non-taxable capital receipts where they are made without an obligation under service rules and the scheme is materially identical to arrangements previously treated as capital in nature. Consistent treatment of comparable payments supports that characterisation. Section 56(2)(xi) does not apply where the scheme characterises cessation of employment as voluntary resignation rather than employer-initiated termination; the provision addresses payments connected with termination or modification of employment terms. The notes state that the impugned addition should be deleted and the payment treated as a non-taxable capital receipt. en-us Tue, 09 Jun 2026 00:00:00 +0530 Wed, 22 Jul 2026 08:48:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=795410 Voluntary ex gratia payments under an employer's retirement scheme may constitute non-taxable capital receipts where they are made without an obligation under service rules and the scheme is materially identical to arrangements previously treated as capital in nature. Consistent treatment of comparable payments supports that characterisation. Section 56(2)(xi) does not apply where the scheme characterises cessation of employment as voluntary resignation rather than employer-initiated termination; the provision addresses payments connected with termination or modification of employment terms. The notes state that the impugned addition should be deleted and the payment treated as a non-taxable capital receipt. Case-Laws Income Tax Tue, 09 Jun 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=795410