Taxability on compensation received

Dear Rajesh,

The same is not covered by Sec 28(ii)(c) because the said payment was not made for the termination or modification of the terms.

any compensation or other payment due to or received by—

(c) any person, by whatever name called, holding an agency in  India for any part of the activities relating to the business of any other person, at or in connection with the termination of the agency or the modification of the terms and conditions relating thereto;

Next question, What will be the tax treatment of such death compensation?

Well, I don't know whether the same will be taxable or not but I could not find anything to prove that it will not be taxable........

I feel if it is taxable then Law is harsh to tax a death compensation as income.....:(

dear friend

i also don't have any judgement in this regard.in my opinion this amount will be taxable.i don't think this amount will be exempt.i think this amount will be taxable under capital gain.but wait for other replies.

regards

tarun rustagi