Money received from a firm

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1359 Points Posted on 06 July 2022
money received from a firm for not filing a civil suit against firm
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On 06 July 2022 at 19:00 Report
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This discussion explores the tax implications of receiving money from a firm in exchange for not filing a civil suit. It clarifies that such payments are generally treated as compensation. The right to relinquish a lawsuit is considered a form of capital income, and the key question is whether this capital receipt is taxable or not.

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Chartered Accountant
86505 Points Posted on 06 July 2022
Same is treated as compensation.
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On 06 July 2022 at 21:50
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2487 Points Posted on 07 July 2022
Right to relinquish to sue is a form of capital income.....and hence not taxable
it is capital reciept
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On 07 July 2022 at 16:21
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Chartered Accountant
86505 Points Posted on 08 July 2022
Same is taxable
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On 08 July 2022 at 00:02

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