Compensation to Employee on Termination or Modification of Contract  - (New) Section 92(2)(j) / (Old) Section 56(2)(xi)

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Full Text of the Document

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....tionally broad to prevent tax leakage through the misclassification of payments. It covers any compensation or payment: • By whatever name called: Whether termed as "severance pay," "ex-gratia," "settlement," or "non-compete fee." • Due to or Received by: It triggers taxability on an accrual or receipt basis, whichever is earlier. • In connection with termina....