Settlement Consideration amounts to “Capital Gains”, not “Profits in lieu of Salary”: Delhi HC

The Delhi High Court ruled that settlement consideration received by an individual should be treated as capital gains rather than profits in lieu of salary. The court determined that such payments do not fall under the purview of salary income and should be taxed accordingly under capital gains provisions. This judgment provides clarity on the tax treatment of settlement payments, offering a precedent for similar cases where the nature of such receipts is in question.