Tax on the fees received by Missionaries and subsequently made over to the society. - Income Tax - 1121/CBDT

INSTRUCTION NO. 1121/CBDT 11B, Income Tax Exemption to Missionaries F.No.200/88/75-II(A I) Central Board of Direct Taxes GOVT OF INDIA New Delhi Dated: 5.12.1977 To All Commissioners of Income Tax Sir, Sub: Exemption from payment of Income-Tax on Salaries of members of Religious Congregations Attention is invited to Circular No.1 of 1944 C.No.26(43)-IT/43, dated 24.1.44 in which the liability to tax on the fees received by Missionaries and subsequently made over to the society had been considered. 2. Representations have been received from the members of religious congregations situated all over the country regarding the taxability of the fees received by them. The question for consideration is whether the fees or the other earnings of the missionaries be assessed as their income, although the same is to be made over to the congregation to which they belong under the rules thereof. 3. The Board have examined this issue and have decided that since the fees received by the missionaries are to be made over to the congregation concerned there is an over-riding title to the fees which would entitle the missionaries to exemption from payment of tax. Hence such fees of earnings are not taxable in their hands. These instructions may be brought to the notice of all the officers working in your charge. Yours faithfully (Signed) J.F. Sharma Secretary Central Board of Direct Taxes Note: This exemption is restricted only to the individual missionary and not to the income of the missionary per se . Taxability of such an income gets transferred to the institution from the individual provided the entire income for the missionary is assessed with the income of the institution and satisfies all the rules governing Income Tax exemption given to the institution u/s. 12A .