Income Tax Dept warns public against cash dealings of Rs 2 lakh or more saying that the receiver of the amount will have to cough up an equal amount as penalty. CBDT further extends the time for Linking PAN with Aadhaar till 30th June, 2018.

Sum received by Sushmita Sen towards damages for being sexually harassed not taxable

Compensation received by assessee, a film actress from Coca Cola India Limited (CCIL) towards damages caused to assessee's reputation, not income liable to tax. Assessee had received a total amount of Rs. 145 lacs in lieu of settlement for breach of terms of celebrity engagement contract. However, only an amount of Rs. 50 lakhs was due to assessee under the Contractual terms, thus, additional amount of Rs. 95 lakhs did not arise out of exercise of profession. The balance amount of Rs.95 lacs is stated to be received towards damages arising out of her being sexually harassed by CCIL employee, for having disparaged her professional reputation by false allegations and for the repudiatory breach of contract by CCIL; Such compensation could not be termed as any benefit, perquisites arising to assessee out of exercise of profession, hence, it cannot be construed to be assessee's income either under section 2(24) or under section 28

Refer:[2018] 99 taxmann.com 252 (Mumbai - Trib.)

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