Business or professional

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12 June 2017 Started off filing IT returns as a "Professional" for teaching services.
Over the years, activities have diversified into multiple disciplines.

Would it be ok to switch to filing as a "business" and take advantage of the 8% presumptive taxation?
Or would it flag up the IT return?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

12 June 2017 No you can't declare it as an business.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

12 June 2017 You will receive a notice after sometime for correcting same

Kanakasabapathi Subramanian

Kanakasabapathi Subramanian (Querist)

12 June 2017 Thank you. I genuinely feel it has become a business per the definition in the Act. How do I go about changing the Profession to a Business?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

12 June 2017 You never change profession into business. If you are running coaching centre with many teachers then it would be consider as business

Kanakasabapathi Subramanian

Kanakasabapathi Subramanian (Querist)

13 June 2017 Thanks again. That is exactly what happened. What started as one person teaching a few students in a single discipline has become a large academy containing 30+ teachers in many different disciplines beyond the originator's core expertise. Question is, how do we convince the IT dept that it is indeed a business now? In prev years, there was no need to change the filing status from Professional to Business as the tax would be the same for both.

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