1.5. "PROFITS IN LIEU OF SALARY" INCLUDES-
(i) The amount of any compensation due to or received by an assessee from his employer or former employer at or in connection with...
-(A) the termination of his employment or
-(B) the modification of the terms and conditions relating thereto;
(ii) Any payment due to or received by an assessee..
-(A) from an employer or a former employer or
-(B) from a provident or other fund to the extent to which it does not consist of contributions by the assessee or Interest on such contribution or
-(C) any sum received under a Keyman Insurance Policy including the sum allocated by way of bonus on such policy;
(iii)any amount due to or received, whether in lump sum or otherwise, by any assessee from any person –
(A) before his joining any employment with that person; or
(B) after cessation of his employment with that person.]
exceptions: - the following receipts will not be considered for these clauses.
- any death cum gratuity; it is chargeable under section 17(1) (iii).
- Commuted value of pension; it is chargeable under section 17(1) (ii).
- Retrenchment compensation: - it is chargeable under sub section (i) of section 17(3) above.
- Payment from a statutory provident fund:- a provident fund to which provident fund act, 1925 applies or has been set up and notified by the central government, such receipt is fully exempt u/s 10(11).