My one of the relative received compensation settlement amount for divorce during the financial year 2016-17 may be November-2016 amount of Rs.2,50,000/-.
How to treat above amount 1. It is chargeable income ? 2. Under which head or ITR form to be use if we want to file the return .
03 January 2017
1 Lump sum received is a capital receipt exempted from tax. 2 Monthly receipt is taxable if the amount exceeds 2.50 lacs per yer. File ITR 1 under the head income from other sources in case tax payable.
03 January 2017
If it is lump sum compensation than it is capital receipt it is exempted. Revenue receipt is taxable in the hands of the assasee i.e monthly compensation will be considered as income.
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