Question ID :
Income tax on lump sum amount received by Advocate.
An advocate, super senior citizen, received a substantial amount in lump sum from 'Advocate Welfare Fund' upon permanently stopping his legal practice. Whether that amount is liable to income tax. If so, the said amount is to be offered under which 'head of income'.
Answer ID :
May 20, 2020
Since this fund is created as a welfare scheme like PF distribution from recognized PF for employees. Hence this should be exempt provided advocate has been in practice for minimum 5 years.
I don't have reference of specific section which provides exemption.
CA Yogesh Kumar on
May 23, 2020