The payment received as non-competition fee under a negative covenant was always treated as a capital receipt till A.Y. 2003-04. It was only vide Finance Act, 2002 that clause (va) was inserted in section 28 of the Income-tax Act, 1961 with effect from 1.4.2003, that the said capital receipt was made taxable.The payment received as non-competition fee under a negative covenant was always treated as a capital receipt till A.Y. 2003-04. It was only vide Finance Act, 2002 that clause (va) was inserted in section 28 of the Income-tax Act, 1961 with effect from 1.4.2003, that the said capital receipt was made taxable.taxmann.com Latest ArticlesRead More
Non-Compete Fee – Stuck between Dichotomy of Capital and Revenue
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- Post published:August 11, 2020
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