I receive a monthly monetary cash compensation in lieu of employment offered to me. In case the compensation is received against actual services rendered by you under a contract, then the income would be taxable as income from salary in your hands. Relying on this circular and the judicial precedents, one may construe that monthly voluntary cash compensation received by you shall not be subject to tax. However, considering the specific language of the circular on the periodicity of the payment, litigation in this regard cannot be ruled out. Parizad Sirwalla is partner and head, global mobility services, tax, KPMG in India.

Source: Mint September 29, 2019 11:48 UTC