TaxTMI 
TaxTMI 
Taxability of compensation in connection to business or employment
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....axability of compensation in connection to business or employment <br>Budget<br>Dated:- 5-2-2018<br><BR>Taxability of compensation in connection to business or employment Under the existing provision....
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....s of the Act, certain types of compensation receipts are taxable as business income under section 28. However, the existing provisions of clause (ii) of section 28 is restrictive in its scope as far a....
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....s taxation of compensation is concerned; a large segment of compensation receipts in connection with business and employment is out of the purview of taxation leading to base erosion and revenue loss.....
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.... Therefore, it is proposed to amend section 28 of the Act to provide that any compensation received or receivable, whether revenue or capital, in connection with the termination or the modification o....
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....f the terms and conditions of any contract relating to its business shall be taxable as business income. It is further proposed that any compensation received or receivable, whether in the nature of r....
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....evenue or capital, in connection with the termination or the modification of the terms and conditions of any contract relating to its employment shall be taxable under section 56 of the Act. These am....
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....endments will take effect from 1st April, 2019 and will, accordingly, apply in relation to assessment year 2019-20 and subsequent assessment years. [Clause 3, 9 & 21]<BR> News - Press release - PIB....