44ad

Tax under section 44AD (Presumptive Basis) is applicable only for business income. Tuition services will not be covered under 44AD.

 

Originally posted by : SEETHARAMAN
	Tax under section 44AD (Presumptive Basis) is applicable only for business income. Tuition services will not be covered under 44AD.

Thanks for reply.

44AD excludes only those professions which are specified in Sec 44AA. and Tuition by a B.Com Level person is not specified in 44AA. So, We can tax u/s 44AD.

My Question is that, whether 44AD excludes all professions or only specified professions under section 44AA.

Please answer .

As Section 44AD specifically mentions the word business, therefore section cannot be applied in case of professionals.

Thank you seetharaman

I agreed with you.

Originally posted by : Tribhuvan Aditya Singh
	you can either show income from tuition under 44ad or under other sources.. in your case, 44ad is appropriate according to me.

Please tell me the basis of taxing under other source and not under PGBP.

First of all, it shall not be tenable to offer it for tax under section 44AD. Intent of law is to benefit the business class and exclude service/professional class. Even if you use section 44AD this could be a matter of litigation at later stages and chances would be ruling with the intention of the law.

Now showing it as income from other sources or PGBP, it depends on the nature and scale of business. If the coaching receipts are substantial and there are seperate expenses like staffing, coaching premises rentals, computers, etc, then it shall be appropriate to show it under PGBP.On the contrary if the scale is small and there no substantial expenses relating to that, offer it as income from other sources.

I hope it helps to some extent.

MY BROTHER PROVIDES CHEMISTRY TUTION CLASSES TO 11th & 12th CLASS HAVING A STRENGTH OF 80 STUDENTS. WITH ANNUAL INCOME ABOUT 3.30 LAKH. UNDER WHICH SECTION HIS INCOME IS TAXABLE 44AD OR 44ADA

Sir,

Tution Income under which section I have to show in ITR 4.  Is it cover under 44AD OR 44 ADA  or other source of Income.  Which ITR  I have to file

Please reply at the earliest.

Regards

L.Keshav