SEPARATION FEE TAXABLE: TRIBUNAL

Money received by an employee of a foreign company while leaving the firm, even if it is given as non-complete fee, will be taxable in India. In the case of a former Chief Executive Officer of Netherlands-based HCL Deluxe NV (HDX), the Delhi Bench of the Income Tax Appellate Tribunal ruled recently that $1 million received by him on his termination by the firm would be taxed as salary.