Business or professional

This query is : Open

Kanakasabapathi Subramanian (Querist)
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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)
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12 June 2017 No you can't declare it as an business.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
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12 June 2017 You will receive a notice after sometime for correcting same

Kanakasabapathi Subramanian

Kanakasabapathi Subramanian (Querist)
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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)
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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)
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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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