Recipt of Exgratia payment voluntarily by an employer on the cessation of employment on the closure of the unit wherein the employee has noo option to get further employment due to age, technical competance will tantamount to capital receipt and hence not taxable under the incometax act and not falling within the ambit of Profit in lieu of Salary under section 17(3) ?
If capital receipt any latest judgements in favour of the same decision ?
Exgratia is not as a requirement of law or any statutory compliance or by virtue of any contract of employment but by mutal settlement for the relinquishment of the rights to continue in the job for which the exgratia payment is made as a compensation in the nature of capital receipt
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