Outstanding professional fees taxable when received; authorities must obtain information at discontinuance to ensure proper assessment. Outstanding fees realised after a professional discontinues practice are treated as the recipient's income in the year of receipt where they would have been taxable if received earlier; the discontinuing person must notify the tax officer within the statutory period or face a penalty. Tax officers are directed to use their information-gathering powers to obtain particulars of all outstanding fees at discontinuance and to call for these particulars before disposing of summary assessments so subsequent receipts can be tracked and verified against declared debts.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Outstanding professional fees taxable when received; authorities must obtain information at discontinuance to ensure proper assessment.
Outstanding fees realised after a professional discontinues practice are treated as the recipient's income in the year of receipt where they would have been taxable if received earlier; the discontinuing person must notify the tax officer within the statutory period or face a penalty. Tax officers are directed to use their information-gathering powers to obtain particulars of all outstanding fees at discontinuance and to call for these particulars before disposing of summary assessments so subsequent receipts can be tracked and verified against declared debts.
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