Which of the following receipts/payments are capital in nature ?

CS Executive · Tax Laws · PYQS · December 2024
Which of the following receipts/payments are capital in nature ?
(A) Advance receipt of Royalty for 3 years
(B) Lump sum payment received by a director of the company against his resignation from Directorship
(C) Foreign tour expenses of a company manager to study the new techniques of production for enhancing the profit
(D) Compensation received for loss of Capital Assets

Answer & Explanation:

Correct Answer: Option (D)

Official answer key: (D).

Topics: Income Tax Act

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