tution fees

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ravi agarwal (Querist)
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29 June 2011 sir,
if a person is managing his shop and also indulges in giving tutions to some students then where his tution fess income is to be shown in income from business n profession or income from other sources n whether the expenses incurred for giving tutions will be allowed as an expense ..

and sir will it make any difference if he is fully engaged in giving tutions n not manging his shop?

CA Rajendra Purohit

CA Rajendra Purohit (Expert)
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30 June 2011 Income from other sources is a residual Head. Tution income is an eligible business income. Thus such income should be calculated under PGBP Head.

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ravi agarwal

ravi agarwal (Querist)
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01 July 2011 thanks , but sir will it not have any impact on considerabilty under the heads of income
that its just a part time income n having the irregular nature?

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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02 August 2025 Great question! Here's a clear explanation regarding **tuition fees income** and how it should be reported:

### 1. **Where to show tuition fee income?**

* **Tuition fees received for giving tuitions** are considered **Income from Business or Profession (PGBP)** — even if the tuition activity is part-time or irregular.
* This is because it is an **earned income** from providing a service.
* It **should NOT be shown under Income from Other Sources**, which is usually for passive or incidental income.

### 2. **Are expenses related to tuition allowed?**

* Yes, expenses **incurred wholly and exclusively for the tuition activity** (like books, stationery, rent for tuition space, travel for tuitions, etc.) can be claimed as business expenses and deducted from tuition income.
* These expenses help determine the **net taxable income** from tuition.

### 3. **What if the person is fully engaged only in giving tuitions and not managing the shop?**

* The **nature of the income head remains the same** — tuition fee income will still be **under Business & Profession**.
* Whether part-time or full-time doesn’t change the head of income.
* The main difference might be in scale, regularity, or professional treatment, but tax-wise it remains PGBP.

### Summary:

| Scenario | Income Head | Expenses Allowed? |
| ------------------------------------------- | --------------------- | ----------------------- |
| Managing shop + giving tuitions (part-time) | Business & Profession | Yes, related to tuition |
| Only giving tuitions (full-time) | Business & Profession | Yes |

### Why not “Other Sources”?

* Other Sources is a residual head for income not chargeable under other specific heads.
* Tuition income is active and arises from service, so PGBP is the right head.

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If you want, I can help with sample entries or tax treatment for expenses related to tuition. Would that help?

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