URGENT- INCOME FROM OTHER SOURCES

Padmanabh (ACCOUNTS & FINANCIAL CONSULTANT) (271 Points)

02 August 2008

I am little bit confuse for the following question..

Mr. X has participated in one of the famous car rally...

He won the same and have been awarded with Rs 10,000/- and a Trophy..

Can any one help me whether

1. It is chargable under income from other sources or,

2. As a Business income or,

3 Entire income is exempted if we assume he is not a professional sportsman or,

4. If none of the above What will be the tax impact on such income????

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6 Replies

Darshu (CA) (1580 Points)
Replied 02 August 2008

This income will be charged under the head Income from other Sources.....

CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 02 August 2008

Originally posted by :Darshu
"	This income will be charged under the head Income from other Sources.....	"

yes

M.Sriram Shenoy (CA Final) (814 Points)
Replied 02 August 2008

If the prize winner happens to be a professional car racer, then it would be assessed under the head "Business income".

On the other hand, if the person is not a professional, then such income would be assessed under the head "Income from Other Sources".

Either which way, such income will never be exempt under the act.

VIGNESH (Manager Finance &Accounts) (327 Points)
Replied 04 August 2008

Originally posted by :Padmanabh
"	I am little bit confuse for the following question.. Mr. X has participated in one of the famous car rally... He won the same and have been awarded with Rs 10,000/- and a Trophy.. Can any one help me whether 1. It is chargable under income from other sources or, 2. As a Business income or, 3 Entire income is exempted if we assume he is not a professional sportsman or, 4. If none of the above What will be the tax impact on such income????	"