Applicability of section 44ad on c.oaching/tution classes

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Akshay Shah

Akshay Shah (Querist)
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07 May 2014 Do a individual running coaching classes on small scale basis from her residence covered under section 44AD

Sandeep Dharar

Sandeep Dharar (Expert)
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07 May 2014 Yes if it crosses the limit mentioned in the section.

U may visit the following link:-

https://law.incometaxindia.gov.in/DIT/HtmlFileProcess.aspx?FooterPath=D:\WebSites\DITTaxmann\Act2010\DirectTaxLaws\ITACT\HTMLFiles\2011&DFile=section44ad.htm&tar=top#

Akshay Shah

Akshay Shah (Querist)
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07 May 2014 Sir,

I meant to ask whether coaching classes is eligible business for the purpose of section 44AD.

The word business is used.
I think Business doesn't covers profession and coaching classes comes under profession.

Sandeep Dharar

Sandeep Dharar (Expert)
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07 May 2014 If it is not the main source of income then it comes under other income. Suppose u r an employee of a concern & getting salary PM. U also took classes of some students like junior class, but is is not regular. So this income earned by u from those class would b ur other income.

And if a teacher(Professional) is running a coaching institute then it is Business income of the tutor.

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Akshay Shah

Akshay Shah (Querist)
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07 May 2014 I would like to in form you that main profession of individual is taking tution classes and she doesn't comes under Incoem Tax audit.

Now the tution income comes under eligible business for section 44AD.

Can you please explain applicability of section 44AD on coaching/tution classes?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 May 2014 Dear Akshay.

The answer is Yes. it is covered under 44AD.

Reason for the same is that 44AD excludes only those professions as are covered under 44AA and tuition is not included in 44AA.

Akshay Shah

Akshay Shah (Querist)
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08 May 2014 Thank you sir for sharing valuable feedback.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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08 May 2014 you are welcome Akshay..

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