Liability to tax - Fees received by Missionaries and subsequently made over to their Society - Income Tax - 5 of 1940

Circular No. 5 of 1940 D.Dis. No.26(33)-I.T./39 CENTRAL BOARD OF REVENUE New Delhi, the 2nd January 1940. Liability to tax - Fees received by Missionaries and subsequently made over to their Society Medical fees, examination fees or any other kind of fees received by the missionaries are taxable in the hands of the missionaries themselves even though under the terms of their employment or the rules of the Society to which they belong the fees have to be made over to the Society. These fees are earned by the missionaries for professional or other services rendered by them and the fees are paid to them and not the Missionary Societies. Not only is there an element of accrual of the fees to the missionaries but there is an actual receipt by them. The fact that they are, by the terms of their contracts, required to make over the fees to the societies does not affect the liability (cf. 2 I.T.C. 286). Sd/- First Secretary, Central Board of Revenue