Income tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 May 2012
a doctor is organised conference about knowledge and update of new decease.
a new bank account is open.. and fix membership fee is received who wants to attend the conference...
who is liable to assessed for tax liability for this profit and loss....
how is taxability of this events and who is
liable for this assessment....
whether this is exempt due to object of this event is not a trade & commerce.....
a new bank account is open.. and fix membership fee is received who wants to attend the conference...
who is liable to assessed for tax liability for this profit and loss....
how is taxability of this events and who is
liable for this assessment....
whether this is exempt due to object of this event is not a trade & commerce.....
22 May 2012
INCOME WILL BE TAXABLE UNDER THE HEAD OF BUSINESS AND PROFESSIONAL.
Querist : Anonymous
Querist :
Anonymous
(Querist)
22 May 2012
in whose assessment?
whether new entity in the name of conference name or organisor is the assessee...?
who is the assessee?
whether new entity in the name of conference name or organisor is the assessee...?
who is the assessee?
31 July 2024
When a doctor organizes a conference, the tax implications and responsibilities can be complex, depending on various factors such as the nature of the conference, the organization, and the entity handling the funds. Here's a detailed breakdown of the tax aspects:
### 1. **Nature of the Conference**
- **Objective**: Since the conference is organized for the purpose of knowledge dissemination and updating on new diseases, it is primarily educational and professional in nature.
- **Trade or Commerce**: If the conference is conducted purely for professional development and not for profit, it may not be considered a trade or commerce activity. However, the exact nature of the event and how it is organized will influence its taxability.
### 2. **Tax Liability**
- **Receipts and Expenses**: If the conference generates income (e.g., from membership fees) and incurs expenses, the net profit or loss must be accounted for.
#### **Taxation Aspects:**
1. **If Conducted by an Individual (Doctor)**
- **Personal Income Tax**: If the doctor personally organizes the conference and the receipts exceed expenses, the net profit will be added to the doctor's personal income and taxed accordingly.
- **Taxable Income**: The profit will be treated as part of the doctor's income from profession or business, depending on how the activity is categorized.
2. **If Conducted by a Separate Entity**
- **New Bank Account**: If a new bank account is opened in the name of the conference, and it is run as a separate entity, then the entity itself would be responsible for tax liabilities.
- **Entity Type**: The type of entity (e.g., trust, society, or non-profit organization) will determine the tax treatment. If it's a non-profit or educational trust, specific exemptions may apply.
### 3. **Tax Exemption**
- **Educational/Charitable Purpose**: If the conference is organized by a registered non-profit organization or trust with educational or charitable objectives, it might qualify for tax exemptions under sections applicable to charitable institutions (like Section 12A or 10(23C) of the Income Tax Act).
- **Conditions for Exemption**: The organization must comply with relevant regulations and ensure that the conference aligns with its charitable or educational objectives.
### 4. **Liability for Assessment**
- **If the Conference is Managed by an Individual**: The individual (doctor) who organized the conference will be responsible for reporting income and expenses and paying taxes on any profits.
- **If Managed by an Entity**: The entity established for the conference will be assessed as a separate legal entity. The tax return must be filed in the name of the entity, and it will be assessed based on its income and expenses.
### 5. **Assessment of New Entity**
- **Registration**: If the new entity (e.g., a trust or society) is formed specifically for organizing the conference, it must be registered as a legal entity. The entity will then be assessed independently.
- **Accounting and Compliance**: The entity must maintain proper books of accounts, file returns, and comply with tax regulations applicable to its type.
### **Summary**
- **Assessable Party**: The entity or individual organizing the conference will be assessed for tax. If the conference is organized by a new entity, that entity will be the assessee.
- **Tax Exemption**: The tax exemption status depends on whether the organizer is a registered non-profit entity and the nature of the conference. Educational or charitable conferences might qualify for exemptions.
- **Responsibility**: Ensure that the new entity, if applicable, is properly registered and compliant with tax laws. If the doctor personally organizes the event, they will be responsible for the tax liabilities.
**Recommendation**: Consulting with a tax professional or legal advisor is advisable to ensure proper compliance and to explore any applicable exemptions or benefits.
### 1. **Nature of the Conference**
- **Objective**: Since the conference is organized for the purpose of knowledge dissemination and updating on new diseases, it is primarily educational and professional in nature.
- **Trade or Commerce**: If the conference is conducted purely for professional development and not for profit, it may not be considered a trade or commerce activity. However, the exact nature of the event and how it is organized will influence its taxability.
### 2. **Tax Liability**
- **Receipts and Expenses**: If the conference generates income (e.g., from membership fees) and incurs expenses, the net profit or loss must be accounted for.
#### **Taxation Aspects:**
1. **If Conducted by an Individual (Doctor)**
- **Personal Income Tax**: If the doctor personally organizes the conference and the receipts exceed expenses, the net profit will be added to the doctor's personal income and taxed accordingly.
- **Taxable Income**: The profit will be treated as part of the doctor's income from profession or business, depending on how the activity is categorized.
2. **If Conducted by a Separate Entity**
- **New Bank Account**: If a new bank account is opened in the name of the conference, and it is run as a separate entity, then the entity itself would be responsible for tax liabilities.
- **Entity Type**: The type of entity (e.g., trust, society, or non-profit organization) will determine the tax treatment. If it's a non-profit or educational trust, specific exemptions may apply.
### 3. **Tax Exemption**
- **Educational/Charitable Purpose**: If the conference is organized by a registered non-profit organization or trust with educational or charitable objectives, it might qualify for tax exemptions under sections applicable to charitable institutions (like Section 12A or 10(23C) of the Income Tax Act).
- **Conditions for Exemption**: The organization must comply with relevant regulations and ensure that the conference aligns with its charitable or educational objectives.
### 4. **Liability for Assessment**
- **If the Conference is Managed by an Individual**: The individual (doctor) who organized the conference will be responsible for reporting income and expenses and paying taxes on any profits.
- **If Managed by an Entity**: The entity established for the conference will be assessed as a separate legal entity. The tax return must be filed in the name of the entity, and it will be assessed based on its income and expenses.
### 5. **Assessment of New Entity**
- **Registration**: If the new entity (e.g., a trust or society) is formed specifically for organizing the conference, it must be registered as a legal entity. The entity will then be assessed independently.
- **Accounting and Compliance**: The entity must maintain proper books of accounts, file returns, and comply with tax regulations applicable to its type.
### **Summary**
- **Assessable Party**: The entity or individual organizing the conference will be assessed for tax. If the conference is organized by a new entity, that entity will be the assessee.
- **Tax Exemption**: The tax exemption status depends on whether the organizer is a registered non-profit entity and the nature of the conference. Educational or charitable conferences might qualify for exemptions.
- **Responsibility**: Ensure that the new entity, if applicable, is properly registered and compliant with tax laws. If the doctor personally organizes the event, they will be responsible for the tax liabilities.
**Recommendation**: Consulting with a tax professional or legal advisor is advisable to ensure proper compliance and to explore any applicable exemptions or benefits.
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