Which head of income ?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2013 Dear sir,

I have one client and he is take contract from Jewelers for making design and polic, Can I say which Income rec. my client its a Profession Income ? or If its Not a profession Income than where this income show ? please if any one giving answer of this question please tell me which section I refer for this confirmation ?

kunal

kunal (Expert)
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11 February 2013 you're right
it's a professional income

"Profession involves occupation requiring purely intellectual or manual skill”

Querist : Anonymous

Querist : Anonymous (Querist)

11 February 2013 But Sir he has not any certificate. and according to income tax what definition given for professional ?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Good question! Here's how to understand it under Income Tax law:

1. Which head of income?
Income from taking contracts for making designs and polish (for jewelers) is generally considered "Profits and Gains from Business or Profession" under Section 28 of the Income Tax Act.

It can be classified as Business Income or Professional Income depending on the nature of the activity.

2. Professional Income vs Business Income
Professional Income usually refers to income from a vocation requiring specialized knowledge, skill, or expertise, often intellectual or manual skill.

Business Income refers to income from commercial activities or trading.

3. Is certification necessary?
No certificate is mandatory for an income to be treated as professional income.

What matters is the nature of service and skills involved.

4. Legal references
Section 28(i) includes income from business or profession.

The CBDT Circular No. 682 explains professional income includes activities involving specialized skills and intellectual work.

Courts have held that absence of a professional certificate does not disqualify income from being treated as professional if the nature of the work is professional.

5. Summary
Activity Likely Head of Income
Contract for making design/polish Business or Profession Income (Section 28)
Requires specialized skill/manual skill Professional Income (part of Section 28)

So, you can classify your client's income as "Income from Profession" even if he doesn’t have a certificate, as long as the work involves intellectual/manual skill.

If you want a precise section or circular for reference, you can refer to:

Section 28(i) of the Income Tax Act

CBDT Circular No. 682 dated 24/04/1994 (clarifies professional income scope)

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