TIP taxability, Income Tax

[NAV HIND JAIN]

TIP RECEIVED IN HOTEL LINE IS TAXABLE UNDER WHAT HEAD

Posts / Replies

[Sachin Agarwal]

Dear Nav Hind, TIP will taxable in the head of teh Business or profession. please write if there is any other confusion in this regard. [email protected]

[Sunil Jain]

Technically speaking Tip recd in hotel business is paybale to the staff and is to be credited as receipt and debited in Tips and incentive account. However in case the entire amount is not paid to the staff the diffrence will automatically be shown as part of income in the profit and loss account of the assessee.