Section 18(1)

For the purposes of this Part, “profits in lieu of salary” includes, —

(a) the amount of any compensation due to, or received by, an assessee from his employer or former employer at or in connection with the—

(i) termination of his employment; or

(ii) modification of the terms and conditions relating thereto;

(b) any amount due to, or received, whether in lump sum or otherwise, by any assessee from any person—

(i) before joining employment with that person; or

(ii) after cessation of his employment with that person;

(c) any payment due to or received by an assessee—

(i) from an employer or a former employer; or

(ii) from a provident or other fund, to the extent to which it does not consist of contributions by the assessee or interest on such contributions; or

(iii) any sum received under a Keyman insurance policy as defined in Schedule II (Note 1), including the sum allocated by way of bonus on such policy.

Schedule II [Note 1(c)]

“Keyman insurance policy” means a life insurance policy–

(i) taken by a person on the life of another person;

(ii) such person is or was the employee of the first-mentioned person or is or was connected in any manner with the business of the first-mentioned person; and

(iii) includes such policy which has been assigned to a person at any time during the term of the policy, with or without any consideration;

Section 18(2)

The payment referred in sub-section (1)(c) shall not include any payment referred to in–

(a) Schedule II (TSN 3);

(b) Schedule II (TSN 4);

(c) Schedule II (TSN 8); and

(d) Schedule III (TSN 11).