Taxation · Income Tax Act
AB & Co. received ₹2,00,000 as compensation from CD & Co. for the premature termination of an agency contract. Under the Income Tax Act, the amount so received is classified as a:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Revenue receipt and not taxable
- 2Revenue receipt and taxable
- 3Capital receipt and not taxable
- 4Capital receipt and taxable✓
Correct answer
Capital receipt and taxable
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