LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Which Head of Income

Elton Sukumar M (Certified Accounting Technician) (734 Points)

11 July 2010

A free lance pastor (church priest) income should be taxed under which head of income. He is not getting any fixed salary. There is no where employer and employee relationship He is receiving gifts form lay men. Should I charge under business and profession or Other Sources?

Reply
Follow
Share

34 Replies

manoj (student) (5205 Points)
Replied 11 July 2010

other source of income

RAKESH (Almost CA) (2199 Points)
Replied 12 July 2010

I think business income

(Guest)

PGBP

vishnupriya (CA Final) (1418 Points)
Replied 12 July 2010

Is the priest's work is commercial & considered as business?

C.A Trapti varshney (CA (ranker) B.com C.S) (125 Points)
Replied 12 July 2010

Priest's income should be charged U/h other sources. These should be treated as simple gifts n taxed u/s 56(2)vii.

CA PuRvI M!$rA (-) (2260 Points)
Replied 12 July 2010

PGBP.

C.A Trapti varshney (CA (ranker) B.com C.S) (125 Points)
Replied 12 July 2010

It cannot be charged as business income b'coz its not a business

As per sec 2(13) to regard an activity as business , there must be a course of dealings , either actually continued or contemplated to be continued with a profit motive not for sport or pleasure. hence not a businee n cannot be taxed under business profession. i hope u got this point.

chetan Loknathka (student) (102 Points)
Replied 12 July 2010

this income is income from other sources

Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)
Replied 12 July 2010

Originally posted by : I will Win One Day
	hi, ofcourse such income shall be taxable under IFOS and not under any other heads. A free lance pastor (church priest) income should be taxed under which head of income. He is not getting any fixed salary. There is no where employer and employee relationship He is receiving gifts form lay men. Should I charge under business and profession or Other Sources?

Rakesh Kumar (B.Com ( H ) Pursuing CA Final ) (327 Points)
Replied 12 July 2010

shoud be taxed under income from Other Sources...

CA Devanshi Gandhi (Ajani) (FCA DISA Mcom CIFRS & LLB) (9058 Points)
Replied 12 July 2010

IFOS

Amir (Learner) (4016 Points)
Replied 12 July 2010

Dear Trapti,

I don't know what the correct answer is, but if I have to pick one then I wanna go with ur answer just becos its explanation is quite justified.

But this has given rise to another doubt ...........:(

Say an assesee practices something like CA, CS, CWA doctor, lawyer or anything.

Now, can he contend that he does this out of passion /hobby /pleasure & profit earning is never a motive & it is just an incidental thing that happens on its own. {Say this assesee accepts whatever fee his clients pay to him just like the priest in the above example}