Profit in lieu of salary is a part of salary income. It is included in gross salary and taxed accordingly. Profit in lieu of salary includes the following-
(a) Any compensation due to or received by a employee from his employer or former employer at or in connection with the termination of his employment or modification of the terms & conditions relating thereto is taxable as profit in lieu of salary after providing exemption u/s 10(10B) or 10(10C), if any.
(b) Any payment (except to the extent it is specifically exempt u/s 10) due to or received by an employee from his employer or former employer or from a provident fund, or other fund which may otherwise be taxable as income from salary.
(c) Payment from unrecognised provident fund or superannuation fund to the extent it does not consist of contribution by the employee or interest on employee’s contribution.
(d) Any sum received under a keyman insurance policy including the sum allocated by way of bonus on such policy.
(e) Any amount received in lump sum or otherwise from any person prior to his joining employment or after cessation of employment with that person.

Taxmantra.com which offers most comprehensive return filing service in India was launched to help individuals in their taxation matters. We just require your salary certificate/ other income details to file return of income. Taxmantra.com offers excellent tax support in addition to filing of return of income and comprehensive tax planning. At Taxmantra.com we do not put you at pain by asking to fill in long tax forms.
You just need to fill in a form with basic details after attaching your salary certificate/ other income details, after which we take care to online tax return filing in most hassle free manner. So online income tax filing with Taxmantra is obviously a better experience. Get in touch with us to file tax return online today and stay hassle free.
Join us in pursuit of simplifying individual taxation! We welcome you to Taxmantra for easy online income tax filing / online return filing!