Tuesday 24 November 2015

Sum received for restrictive covenant in relation to profession is tax-free

IT : Clause (va) of section 28 of the Act taxes a sum received for a restrictive covenant in relation to a business, but not a profession. Compensation attributable to a negative/restrictive covenant is a capital receipt and as the same does not fall within the ambit of section 28(va), it is not taxable

No comments:

Post a Comment