I have income from pension and interest only. But I have one casual income for the year ending 31-3-2009, a one-time consultation fee for service rendered from a private company. What IT form should I use now? Earlier years, I had used ITR 1.R.V.Ramachandran , Banglore
ITR-4 is used by person receiving income from “business or profession”. Consultancy fee certainly comes within purview of meaning of “income from profession”.
However, in the light of facts that you are paid one-time consultancy fee, complete facts of the case can only show whether the one time payment should be assessed under the head ‘income from business or profession ” or “income from other sources”
While you received one time payment as consultation fee ,it is not clear if the service rendered by you was also one time or it was an application systematic effort with your knowledge that the services were rendered to the company. If a solitary consultation was given for which you received the fee, in that facts of the case, you can claim that the income received as consultation fee was “income from other source” , because for treating an income as income from profession , there ahas to be continuous and systematic effort in providing services is a necessity.
If that be so , i.e one time service and one time payment, you can use the income tax return ITR-2 . However , if that is not the case , i.e continuous service was given but payment was received one time, in that case ITR-4 has to be filed .
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