Severance compensation is capital receipt & not chargeable to tax u/s. 17(3): ITAT Ahmedabad

Sudhakar Ratan Shanker Gautam Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad held that the severance compensation received by the employee is a capital receipt and the same is not chargeable to tax under Section 17(3) of the Income-tax Act, 1961. Facts- The assessee, an individual, was employed with You First Money Express Private Limited, which was subsequently acquired by Ebix Money Express Private Limited. Following this acquisition, the assessee’s employment was terminated on 26th October 2017, and he received a severance compensation of Rs.15,50,905/- which was claimed as a capital receipt not ...