Hi all,
I ve received Rs.56000/- on training/professional fees during Jan'14 for which TDS has been deducted & Form 16A for the FY 2013-2014 has also been given.
Will this one time income be shown under the head "income from other sources" or "income from business or profession" while filing my IT returns?
Am taxable under the head "salaries" apart from this.
TIA
FIle ITR-4 because TDS u/s 194J has been deducted from your professional fees.
Show it u/h income from other sources
Well under the Income Tax Act what constitutes a Business Income has no where been properly defined. However In common Parlence Business Income doesnot mean Income of One time nature. Business Activity includes activity of repeating nature.
In your case since it is a one time income, it is advised to show it under the head
Income from Other Sources irrespective of the section under which TDS has been deducted.
You can claim it as income from other source and claim the credit of TDS.
Since it is a one time receipt and is not repetitive in nature and hence cannot be construed as a "business or profession". Business or profession starts when one has frequent receipts from such activity, and some separate efforts and assets are introduced for it. Law is not hard and fast for it.
Thanks all !!
R P S K & Associates
Nashik
CA Inter
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