File as business or professional?

Tax queries 176 views 1 replies

I have a business teaching the arts to students worldwide over the internet. I teach some students directly and some others via a network of teachers who pay me a referral commission. Would this be a "business" or a "profession"? How do I justify calling it a business since the tax for businesses is only on 8% of earnings (while it is 50% for prefession)?

 

Replies (1)

Yours is Vocation, and not business. Only ITR 4, where in you can deduct all the expenses actually incurred. From next year minimum 50% rule shall apply. So enjoy actual expenses this year, which can be more than 50%!!


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