income from tips to Hotel Staff

Earning 4m Tips must b charged as income 4m other sources.... as it cannot b charged under head salary as there is no employer-employee relationship... further there is no question of house property and capital gain...... again this is not at all his business hence no scope of business income... hence will b charged as income from other sources..... as stated by act ..... if any income is not covered by any of the head then will be charged in the residury head i.e. income from other sources....

First, you have to conclude whether the income is not taxable or not. He had earned the tips in the course of his employment.

To treat it as gift and to conclude that amount is exempted from tax, since total amount is less that Rs. 50000, the payment made by the customer is towards service rendered by hims. Though the payment was not made under any obligation, it was made agaisnt some consideration. i.e. prompt service from the hotel staff or expecting a prompt service in future. Therefore, you can not treat it as gift made to the hotel staff with love and affection and Therefore it is taxable. 

Once the income is taxable, now you have to decide the heads of  income under which it is taxable 

To include under the head "Income from salary", there is no employer and employee relationship between the customer of the hotel and the receiver of the tips.

If any income which is taxable and cannot be included under any other head of income, then it is to be taxed only under residual head " Income from other sources".