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Taxability of honorarium

Saumya Agarwal (student) (50 Points)

04 October 2011

DEAR ALL,

PLZ HELP ME OUT IN THIS

CAN HONORARIUM BE TAXED UNDER THE HEAD PGBP?

A PERSON WHO IS A DIRECTOR IN A CO. RECEIVES HONORARIUM FROM THAT CO.,UNDER WHICH HEAD THIS WOULD BE TAXED?

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3 Replies

C.A SHASHANK GOYAL (Chartered Accountant) (362 Points)
Replied 04 October 2011

Hi , I am of the opinion the honorarium should be prima facie taxable under the head income from other sources , but further depends upon the conditions , say , if directors is in whole time employment of the company , then it can be made taxable under the head salary , because it must have received due to professional services received . If not in employment than it can be made taxable under the head bussiness and profession , if honorarium is received for his professional services rendered and if not for his professional services than income from other sources .