Taxation ipcc
This query is : Resolved
KAVIRAJA ADDANGADI
(Expert)
09 January 2019
Monetary compensation for a loss, detriment, or injury to a person or a person's rights or property, awarded by a court judgment or by a contract stipulation regarding breach of contract
As per rule of income tax, all revenue receipts (unless specifically exempted by the IR Act) are taxable under the provisions of the IT Act and all capital receipts (unless made specifically taxable by the Act) do not constitute income chargeable to tax.
The terms ‘capital’ and ‘revenue’ have not been defined in the IT Act and various courts have held that the nature (capital or revenue) of compensation for breach of contract / liquidated damages would depend on the facts of each case.
Monetary compensation for a loss, detriment, or injury to a person or a person's rights or property, awarded by a court judgment or by a contract stipulation regarding breach of contract
As per rule of income tax, all revenue receipts (unless specifically exempted by the IR Act) are taxable under the provisions of the IT Act and all capital receipts (unless made specifically taxable by the Act) do not constitute income chargeable to tax.
The terms ‘capital’ and ‘revenue’ have not been defined in the IT Act and various courts have held that the nature (capital or revenue) of compensation for breach of contract / liquidated damages would depend on the facts of each case.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GST on reimbursement of expenses
- Due date for filing return for the partner in partnership subjected to Tax Audit
- Query on effect of registration of property
- Visiting card purchase
- Wrong CMPo8 file
- Additional trade name
- Number of years as per AS amortisation of Goodwill
- Goodwill transfer of deceased father’s firm – ICAI applying a 27.04.2026 cut-off to the 3 year limit
- Equity Share Sale and Purchase
- Whether output tax is taken credit by purchaser
- Foriegn assets disclosure
- Classification of income of P Ltd company as business or profession
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Need to correct "Whether it is last installment " response in Form 26 QB
- " Income from House Property " in joint names of co-owners
- REGARDING TDS RETURN OF FORM 27Q
- Notice under e-Verification Scheme
- GST demand notice for ITC reversal against exempted supply.
- RCM ON SECURITY CHARGES FROM INDIVIDUALS
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
