providing maths tuition to students is main source of income of your wife
2) it would be regarded as her business income fall under section 44 AD
3) 44AD excludes only those professions as are covered under 44AA and tuition is not included in 44AA.
Does providing maths tuition to students (Class 9-12) constitute profession or business?
Sir - my wife started taking maths tuition and soon the no. of students grew - and we filed for GST as the gross income entered GST limit. We have been paying GST for FY'18-19 but want to know if we should file a) Normal returns b) Presumptive - Profession (Sec 44 ADA), or c) Presumptive - Business (Sec 44 AD), Whilst teaching does not come under Sec 44 ADA even though it is imparting knowledge, can it be considered as a business, even though it does not sound logical as well. So overall a bit confused. Any inputs most welcome, and thanks much... in advance!
Asked 7 years ago in Taxation
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11 Answers
Hi,
If the income from tuition is not under profession or presumptive business. In these circumstances, you may file the normal returns only.
1) Providing knowledge it will come in service and not in business.
2) You are not providing service to tangible assets its intangible assets so it should count in Professional services.
- Where the educational institution is providing only education as a service then such fees are chargeable at NIL rate and such educational institutions are not required to be registered.
- Where educational institutions are also providing other supplies or other services, i.e., providing books to students, providing shoes or uniforms etc to students then in such cases such institutions are liable to get themselves registered.
Dear Sir,
Please ask your above question on www.taxfull.com which is sister concern of www;kaanoon.com, where is experts will be Chartered Accounts.
Sir it would be professional income and same shall be taxable under head of business or profession. It shall not be under presumptive income.
It's profession as education is not business.
Dear Client,
Normal return will file as teaching dose not comes under both heads, Profession and business.
Tax under section 44AD (Presumptive Basis) is applicable only for business income. Tuition services will not be covered under 44ad.
Dear Sir,
It is business and for more details you have to check the issue with chartered accountant who are available in the following link which is no other than sister concern of this Website.
GST is applicable on Tuition Income. Education service is although exempted from GST but it is applicable to Private Tutors. So, one need to register into GST if your annual turnover exceeds Rs. 20 L (Current Limit depending upon state to state)
Tuition fees can be categorized under Income from other sources / Income from business & profession.
Regarding classification of Income, tuition income is generally classifiable under Income from Other Sources. But if you are a teacher and Teaching is your full time occupation , then it is your Income from Business or Profession.
The ITR-4 Form is the Income Tax Return form for those taxpayers who have opted for the presumptive income scheme as per Section 44AD ,Sec 44ADA and Section 44AE of the Income Tax Act.
your wife income would be deemed to be taxed under the head "Income from other sources". She is not a professional teacher, hence the income cannot to be classified as Professional income, also since she has not registered her tuition classes as "Tutorials", it does not qualify as "Business Income".
Therefore she must file her returns showing the Income to be from "Other Sources" only.
