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Case 1: cash prize received by student
Cash prizes paid off in one lump sum is to be treated as ordinary income only if:
a) There is more than one payment
b) Such receipt is for services rendered directly or indirectly
c) Such prize is not for meeting living expenses, to meet the expenses of fees, books etc.
Youth allowance received by the student from government forms part of ordinary income of student.
Case 2: Gratuity received by widow
The amount received by employee on his termination is employee termination payment under section 82-130, and such payment is assessable to income.
However, in case of death, the part of payment relating to his service received by his dependents is not taxable.
Case 3: honorarium received by student
Receipts which are earned and have an element of recurrence are assessable income; however, if such income is derived from an activity which is rendered not for the purpose of earning income are not assessable incomes
Volunteering income in name of honorarium will not become part of ordinary income if it is not received as remuneration or as a result of employment.
In order words, honorary income earned for voluntary services are not ordinary income.
Case 4: bonus received by employee
Any income or amount received by employee, amounts to its ordinary income if the payment is related to his employment.
Further, consideration should be given to the fact; whether such income is capital or not, as capital income does not form part of ordinary income.
Information, suggestion and knowledge are not property, and simply giving suggestion forms income receipt. Refer: Brent’s, Rolls Royce case