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enhance compensation and tax theron

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Querist : Anonymous

Querist : Anonymous (Querist)

21 November 2010 Whether enhanced compensation , Interest component and solatium thereon is to be Taxed on the year of Receipt on Receipt basis as per CIT Faridabad Vs. ghanshyam ( HUF) civil application. No.4401 OF 2009( ARIING OUT OF slp (C) nO.17614 OF 2008 ) Reported in 315 ITR-1

the ITo has issued a Noticew that the interest on the compensation is treated as a part of compensation and to be taxed in the year of Receipt and not on accrual basis.

Is there any solution ?

Please guide

Kishore Kadam

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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21 November 2010 It can be cash or mercantile basis. Pl read section 145A(b) and section 56(2) (viii) For permitted deduction also see section 57(iv) of the IT Act,1961.

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