Business or professional income

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Querist : Anonymous

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Querist : Anonymous (Querist)
09 June 2015 one of our client providing technical consultancy, its a partnership firm but in this firm one of the partner is non-professional income, and income during the year not exceeds 25lakhs, so under which head firm paying the tax, whether it s considered as a professional income or business income.

09 June 2015 Dear if the non professional income is substantial over the total receipt the nature of business should not be consultancy.

But if some nominal receipt is received with the substantial consultancy income than the nature of business will remain consultancy.

CA. Kapil Verma
Founder-taxadvizer.com

10 June 2015 its consider as a receipts and show as consultancy charges.

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Querist : Anonymous

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Querist : Anonymous (Querist)
11 June 2015 rupesh sir you mean il consider as a business income na, but sir what was the reason to consider as a business income


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