Taxability of the compensation received

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2013 there was a contrat under which first party will pay Rs20Lacs to another party to start a join business but the second party defaulted and didnt start any business and then the first party filed a case againt the first party for Rs 35 Lacs but the Case was finally settled for rs 22 lacs ...

wheteher the balance amount of Rs 2Lacs(Rs22Lacs-Rs 20Lacs) will be taxable under Income tax act and if yes then under which hear of income and under which section????

TKKKKKK

TKKKKKK (Expert)
Follow

11 May 2013 it is taxable u/s 56. under the head income from other sources. As business could not be started. you can claim expenditure of legal fees u/s 57.and remaining amount will be taxable. read this link
https://www.caclubindia.com/articles/understanding-income-from-other-source-with-latest-case-laws-14201.asp

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

11 May 2013 thnx a ton sir....:)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

P.S.Harishankar

Rasheed Mohd Abdul

Sapan Kumar Nayak

Mohammad Abdu Fayaz

bhagat ram goyal

Subscribe Now

Taxability of the compensation received

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

GST CONSULTANCY

CA Final

GST CONSULTANT

Senior Executive

Accountant

Manager- Finance and Compliance