The Income Tax Appellate Tribunal (Mumbai) ruled that any payment received as compensation for sexual harassment is not taxable as income or gains and profits under the Income Tax Act, 1961. This ensures that the victim of sexual harassment is not burdened with tax duties on compensation/damages received.
In May 2018, the Delhi High Court has held that appointment of an external member on the Internal Complaints Committee (“ICC”) – must be in strict compliance with the POSH Laws. In view of that, any enquiry proceedings conducted by the ICC, which has not been constituted in accordance with the POSH laws, may be treated as invalid.
The Government of India is examining the existing framework for dealing with matters of sexual harassment and will propose actions – for implementing the POSH laws in an effective manner.
This post has been authored by Team LawSkills. To learn more about the
existing framework for dealing with matters of sexual harassment, you can visit our course on Sexual Harassment at Workplace.