I am the legal heir of a Government Servant who died in harness. I have received certain amount as leave Salary encashment upon his death, in the capacity of his legal heir. Is it taxable as income from Salary?
This receipt in the hands of the family
is not in the nature of one from an employer to an employee. The deceased had
no right or interest in this receipt. This payment is only by way of financial
benefit to the family of the deceased Government servant, which would not have
been due or paid had the Government servant been alive. In view thereof, the
amount will not be liable to income-tax.
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