13.1 Before being amended by law, section 28 of the Income Tax Act provided that certain types of remuneration income are taxable under the heading “Profits and profits of industry or profession”. However, the scope of this section was restrictive, as it did not cover a significant part of the remuneration revenue related to activities and employment, which led to soil erosion and loss of turnover. 3. ACIT v. Jackie Shroff (2018) 97 Taxmann.com 277 (Mom) – Here, the Assessee was compensated for the withdrawal of the criminal proceedings. The issue in question was personal and not business-related. Therefore, the compensation would not be taxable. Payment that will be made under a contract – a legally enforceable agreement – that relates to the appraiser`s activity will be covered. The term “in respect of” was considered complete and equivalent to “in respect of” and “in respect of” (Doypack Systems (Pvt) Ltd v. UOI, 1988 (36) E.L.T. 201 (s.C)).
Words imply another object and can have a direct and indirect meaning depending on the context. It therefore seems that, where a contract has some sort of connection with the judge`s activity, it may not be in the context of the judge`s profit-making activity or main activity. It is not possible to establish an exhaustive list of payments that can be made during the activity and attract the proposed sub-clause. Consider certain revenues that may be generated in the event of denunciation or infringement and their ability to tax within the meaning of the proposed subsection(s). Can such an amount received for breach of the employment contract be regarded as an amount received without consideration? It seems that it is not possible to consider that the amount was collected without consideration, given that it does in fact have the character of compensation due for a personal loss suffered by the taxable person as a result of such an infringement and that the agreement not to claim damages would be a valid consideration. Therefore, the receipt cannot be taxed as income under this section either. Can remuneration at the end of the employment relationship be considered income for the worker? There are different ways of terminating the employment relationship and the resulting remuneration, to which the worker is entitled, may vary depending on the terms of the employment contract, the nature and reason for the dismissal and the bargaining power of the parties.