I have a query regarding Non compete fees received by employees. There can be two possibilities for the said income. (1) Non-Compete fees received by the employee during the tenure of employment itself (for not joining anywhere else after retires or resigns) (2) Non compete fees received by the employee at the time of retirement
I believe that in the first case amount received is revenue receipt as it is received during the period of employment itself. While in the second case, it is a capital receipt. But I am not sure about this. Can anyone help to remove this confusion? Thanks in Advance!
CAclubindia
