Income tax on lump sum amount received by Advocate
This query is : Resolved
20 May 2020
An advocate, super senior citizen, received a substantial amount in lumpsum from Advocate Welfare Fund' upon permanently stopping his legal practice. Whether that amount is liable to income tax. If so, the said amount is to be offered under which 'head of income'.
20 May 2020
SIR IN MY OPINION IT SHOULD BE CHARGEABLE UNDER PGBP .....
BECAUSE AMOUNT RECEIVED FOR NOT DOING SOMETHING CHARGEABLE UNDER PGBP
BECAUSE AMOUNT RECEIVED FOR NOT DOING SOMETHING CHARGEABLE UNDER PGBP
21 May 2020
may be it will be charged under income from other sources depends upon the facts of the case and based on the welfare of the scheme.
21 May 2020
its taxable under the head PROFIT UNDER BUSINESS AND PROFESSION
29 May 2020
Seems the amount is to be assessed under LTCG in view of the following observation.
* Bar council enrollment (Sannath) is an asset per section 2(14)(a).
* Surrendering the enrollment is a transfer per section 2(47(i).
* The amount received from Advocate Welfare fund is income per section 45(1).
* Cost of acquisition is NIL per section 55(2)(a)(ii).
* Bar council enrollment (Sannath) is an asset per section 2(14)(a).
* Surrendering the enrollment is a transfer per section 2(47(i).
* The amount received from Advocate Welfare fund is income per section 45(1).
* Cost of acquisition is NIL per section 55(2)(a)(ii).
01 June 2020
There is a debatable issue whether enrollment with bar council after passing LLB degree is an asset. In that case member of the every association is an asset. Whether stopping of practice will tantamount to surrendering of enrollment. Is this a sale of Council enrollment to any one or surrendering the same in favour of any body. Cost of acquisition cannot be Nil since this has to be obtained by paying some fees.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- TDS U/S. 194NF
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Import license renewal
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
Trending Online Classes
CAclubindia
