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Coverage of tax on Presumtive Income

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This query is : Resolved

Ravi (Querist)
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27 June 2011 A person is in his professional business of teaching college students - tuition class. I would like to know whether section 44AD or 44AE can be considered in this case or not.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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27 June 2011
I am not in favour of filing return U/s 44AD in your case. However, you may take decision after going through the points
discussed hereunder

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Even though most of the teachers have made teaching as a business yet this is called the most respectable and noble profession.

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Further it can easily be said as a vocation and profession has been defined as "profession includes vocation".

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Hence, even if Teaching Profession has not been included in the specified professions
still it can be treated as vocation and therefore I advise to treat this as a profession. As such Prepare Income & Expenditure A/c for this Income and file return in ITR-4.

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