Doctors need to give tax for gifts they receive

Thiruvananthapuram: The Income tax department has made it clear though circular that from now onwards the doctors need to give tax for the gifts they receive from drug companies. The companies, which give the gift, too should tax for the gifts. In the circular issued by the IT department it is clearly stated that if doctors association too accepts gifts that would treat as income from business.
The medical council in 2009 bought special ruling in 2009 where there were growing allegations on doctors accepting gifts.
As per the rule they banned doctors and their association accepting gifts and free tours from drug companies.
Following this rule that the IT department issued the circular. 
As per income tax act (37.1), if the income from business is invested in the business itself for more development, there are tax concessions. On pretext of this act that drug companies used to supply gifts to the doctors.
But IT department makes it clear that if the income is used for activities, which declared as illegal, the tax concession cannot be given.
In the rule by Medical council, it's illegal to accept gifts and tour packages.
There are also ban on attending seminars, workshops and in aboard and in the country in their favor . If the doctors are asking as advisor to any particular company, that should be as per law.