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Income Tax - Highlights / Catch Notes

Home Highlights May 2019 Year 2019 This

Compensation/ additional sum received for delay in payment of ...


Compensation from payment delays in share tenders is part of sale price, classified as capital receipt, not income.

May 17, 2019

Case Laws     Income Tax     HC

Compensation/ additional sum received for delay in payment of proceeds of shares tendered under the open offer - the reason for increasing the offer by the said sum may be on account of delay in issuance of the shares, nevertheless, the same was nothing but part of the sale price of the share - cannot be seen as an interest on delayed payment on price of the share - clearly a capital receipt

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