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????
This income will be charged under the head Income from other Sources.....
| Originally posted by :Darshu | ||
| " | This income will be charged under the head Income from other Sources..... | " |
yes
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.
| 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???? |
" |
If Mr. X's proffession itself a car race it is taxable under business or proffession else it is taxable only under IFOS
this is taxable as casual income as the nature non recurring
and it is taxable @ flat rate of 30%
i don't agree with Mr. JEEVARATHINAM
in my opinion
If the prize winner happens to be a professional car racer, then it would be assessed under the head "Business income".
But if the person is not a professional, then such income would be assessed under the head "Income from Other Sources".
In any case such income will never be exempt under the act.
CAclubindia
