A client is collecting donations via their personal bank account to financially support a family, specifically for the education of minor children. The query concerns whether these donations, amounting to 'lacs', will be considered taxable income by HMRC, as the funds are for a noble cause and not the client's personal gain. Initial advice suggests donations from relatives might be treated as gifts, but funds from others could be liable as income from other sources.
One of my client is an individual person and he is willing to accept donations from various people to help a family financially as their family members are a minor children and my client wants to fund their education as a guardian.
My query is if he is accepting amounts in his own bank account amounting in lacs from various people as a donation will he be liable to show it in Income tax. It is not my clients income but received for a noble cause.
27 January 2023
accepting donation from relative, consider as gift and nothing add in income. but amount from other will come under inocme from other sources.