Section 17(3) of the Act defines the term "profits in lieu of salary." It includes any payments:
1. A sum of money received by an employee from his employer in place of or in addition to salary or wages.
2. Received by an employee by reason of the termination of his employment.
2. Received by an employee by reason of the termination of his employment.
Examples of payments that may be considered as "profits in lieu of salary" include:
- Compensation for loss of employment
- Payments under an employment agreement, including contractual payments due to the termination of employment
- Compensation received by a person holding an office or employment for the premature termination of a contract
- Amount received on encashment of leave
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