Tax on donation amount

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2012 Hi,
I am a Spiritual Preacher. I have some 3000 to 5000 followers. I have started delivering a Public Speech / Lecture or Conduct classes for my followers, they donate generously in these events in cash and cheques in my name.

Sometimes these collections exceeds Rs.1 Lac per month, which I generally use for myself and some students who stay with me permanently.

I am a Regular Income Tax Payee, since I also give Consulting in Astrology, Life Counseling, Engineering Consultancy etc.

My Question : -

[1] The cash / cheque received from my followers / devotees - is it TAXABLE??

[2] If a person gets Life counseling from me, and surrenders his life to me as his GURU, and if he is willingly gifting me all his income, (after paying necessary TAX) DO I also have to pay TAX on the amount I receive from him?

[3] Is there any provision in Indian Constitution, where anyone following GURU-Shishya Parampara, will get TAX exemption for gifts given internally between Guru and Shishya? All my Students who stay with me, are ready to sign such Legal agreement, if it is possible.

[4] Can we all declare ourselves as a Hindu Family, even though we are all from different families and are not related to each other?? so that we can do any amount of transfer of cash / kind within our group, and which can save us from DOUBLE TAXATION???

This is VERY URGENT, Please guide.

CA Amit Jaiswal

CA Amit Jaiswal (Expert)
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21 September 2012 1. It is taxable.
2. Yes you have to pay tax as he is nt your relative.
3. Under IT Act there is no such provision.
4. No, you can't do like that.