AB & Co. received ₹21,00,000 as compensation from PQ & Co. for premature termination of contract of agency. Amount so received by AB & Co. is:
CS Executive · Tax Laws · PYQS · December 2022
AB & Co. received ₹21,00,000 as compensation from PQ & Co. for premature termination of contract of agency. Amount so received by AB & Co. is:
Answer & Explanation:
Correct Answer: Option (A)
Official answer key: (A). Official source note: AB & Co. received ₹ 21,00,000 as compensation from PQ & Co. for premature termination of contract of agency. Amount so received by AB & Co. is : (A) Capital receipt and taxable (B) Capital receipt and not taxable (C) Revenue receipt and taxable (D) Revenue receipt and not taxable
Topics: Income Tax Act, 1961
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