DIFFERENCE BETWEEN CAPITAL RECEIPTS AND REVENUE RECEIPTS :

Capital Receipts	Revenue Receipts
(i) Amount realised by the sale of fixed assets or by issue of shares or debentures is a capital receipt.	(i) Amount realised by sale of goods or rendering services is always a revenue receipt.
(ii) A receipt in substitution of a source of income is a capital receipt.	(ii) A receipt in substitution of an income is a revenue receipt.
(iii) Amount received for surrender of certain rights under an agreement is a capital receipt, because a capital asset is being given up in the form of these rights.	(iii) Amount received as compensation under an agreement for the loss of future profits is a revenue receipt.
(iv) Instead of lump sum payment if the payment is received in installments, it is a capital receipt.	(iv) If an income is received in a lump sum it is a revenue receipt.
(v) Amount realised from the sale of a capital asset or investment is capital receipt.	(v) Amount realised from the sale of an asset kept for sale is revenue receipt.