Amount of ₹5,00,000 received by Ram & Co., as a compensation for premature termination of contract of agency in the month of April, 2017 is to be treated as:

CS Executive · Tax Laws and Practice · PYQS · June 2018
Amount of ₹5,00,000 received by Ram & Co., as a compensation for premature termination of contract of agency in the month of April, 2017 is to be treated as:
(A) Income from other sources
(B) Taxable under section 28(ii)(c)
(C) Revenue receipt which is exempt
(D) Capital receipt which is not chargeable to tax

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B). Official source note: Amount of ₹ 5,00,000 received by Ram & Co., as a compensation for premature termination of contract of agency in the month of April, 2017 is to be treated as: (A) Income from other sources (B) Taxable under section 28(ii)(c) (C) Revenue receipt which is exempt (D) Capital receipt which is not chargeable to tax

Topics: Income Tax Act, 1961

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic