YES , enhanced compensation is taxable in the YEAR in which it received . (Under Head CG)
Important Note : Interest on Enhanced Compensation is taxable under head OTHER SOURCES after standard deduction of 50% (FLAT)
Important Note : Check whether it is installments of INITIAL COMPENSATION OR ENHANCED COMPENSATION ?
If it is installments of INITIAL COMPENSATION then WHOLE INITIAL COMPENSATION is taxable in the year when first installments is received .
Otherwise , if it is ENHANCED COMPENSATION then it taxable in the year in which it is received .
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