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Income tax_income of guest faculty

Kamaljeet (Executive) (38 Points)

01 March 2015

Hi,

Regarding Income earned by Guest Faculty for lectures given in educational training institutes or colleges, under what head it should be chargeable to income tax - PGBP or IOS? And what are the criteria for their selection.

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4 Replies

Mihir (Wealth Manager) (5293 Points)
Replied 01 March 2015

If the guest faculty is given professional fees, then his income shall be chargeable to income from business/profession. TDS u/s 194J might also be deducted from professional fees.

Kamaljeet (Executive) (38 Points)
Replied 02 March 2015

Can you please expain this. Does delivering lectures on professional courses tantamounts to professional service? If yes, can you please share relevent section/ notification in this regrad.

CA Abhash Mishra (Chartered Accountants) (598 Points)
Replied 02 March 2015

Please refer section 28 where list of business or profession has been given

Anubhav (Chartered Accountant) (429 Points)
Replied 02 March 2015

refer excerpt of Sec 28 below, which says that any professional income is taxable:

refer excerpts of Sec 194J , which says tax is deducted at the time of payment:

Profits and gains of business or profession.

28. 42The following income shall be chargeable to income-tax under the head “Profits and gains of business or profession”,—

(i) the profits and gains43 of any business or profession43 which was carried on by the assessee at any time during the previous year ;

[Fees for professional or technical services.24

25194J. (1) Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any sum by way of—

(a) fees for professional services, or

(b) fees for technical services26, 27[or]

28[(ba) any remuneration or fees or commission by whatever name called, other than those on which tax is deductible under section 192, to a director of a company, or]

27[(c) royalty, or

(d) any sum referred to in clause (va) of section 28,]

shall, at the time of credit of such sum to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct an amount equal to 29[ten] per cent of such sum as income-tax on income comprised therein :

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