Can Educator avail 44AD taxation?

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I am a Educator, I have online video courses that are hosted on websites. Whatever sales happen, I get certain percentage of it. The platform also deducts TDS under Section 194O.

From what I read online, I am not eligible for 44ADA since my profession of online teaching does not satisfy any requirements.

Can I use 44AD in this-case?

Replies (2)
Quick Summary
Educators selling online courses, particularly those receiving royalty income and having TDS deducted under Section 194O, may find Section 44ADA inapplicable as online teaching isn't typically listed. While Section 44AD is for businesses, its direct applicability to royalty income can be complex. It's advisable to consult a chartered accountant to explore claiming business expenses related to course production, software, and other costs, or to assess if your activities qualify as a business eligible for presumptive taxation.

As an educator with royalty income from online video courses, you're correct that Section 194O applies for TDS deduction. Regarding eligibility for presumptive taxation schemes: -

Section 44ADA is specifically for professionals like lawyers, doctors, and consultants, which doesn't include online teaching. So, you're correct that 44ADA isn't applicable. -

Section 44AD is a presumptive taxation scheme for businesses, but it might not be directly applicable to your case since your income is primarily royalty-based. 

However, you may consider consulting a chartered accountant or tax expert to explore the following options: - 

Claiming a reasonable percentage of your royalty income as business expenses (e.g., production costs, software expenses, etc.) - 

Exploring other tax deductions and exemptions available for educators or individuals with royalty income - 

Assessing if your online teaching activities can be considered a "business" and potentially eligible for Section 44AD or other presumptive taxation schemes Keep in mind that tax laws and interpretations can be complex, so professional guidance is essential to ensure you're meeting the necessary requirements and taking advantage of available tax benefits.

Not a very correct answer

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