Professoinal Incime

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 November 2009 Dear Sir/ Madame,

Mr.X is a chartered accountant
Income recieved from his client as land which is located in foreign country where the client is insolvent, The Land which has been given to his agent is his ancestrol property.The client says that the chatered accountant has to sell his land and asking him to take remuneration and returning back the remaining amount.

kindy suggest whether the income is taxable under the head Profession or Capital gain. kindly revert under which clause it relates.

Whether DTAA is applicable for the Client.

chetan soni

chetan soni (Expert)
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06 November 2009 To make any receipt as capital receipt it has to fulfill following conditions:

- Asset should be in the name of the assessee
- It should be in the nature of capital receipt

If the asset if transferred in the name of CA then it will be capital receipt to the CA & if CA is acting as agent for the client then the receipt will be his professional income.

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