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Is professional fees clause applicable on teaching in school

sauvik (Teacher) (23 Points)

25 March 2019

I am about to join a cbse school on contract basis and teach biology to the students of 9th and 10th standard and they are offering me Rs. 22,000/- per month. However their appointment letter says that they are paying me professional fees and it is liable for TDS. I would like to know if I am really eligible for professional fees or not because as per Section 44AA teaching in a school is not included in the list for professional fees or even technical fees.

Also if they start deducting tax from payment made towards me how can i stop it?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 26 March 2019

A person teaching biology can be regarded as technically qualified in the subject and even though specifically not mentioned in the list of professional u/s. 44AA(1), but can earn professional fees. Here you are appointed on contract basis and not as employee, that itself authenticates it, when you accept the terms.

Well, there is no loss even after TDS deduction, which you can claim back by filing return; but I see it as better option.

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sauvik (Teacher) (23 Points)
Replied 26 March 2019

Thank you so much for the confirmation. Can you please tell me the procedure to file return for the same (for professional fees) in my case. Thanks in advance.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 26 March 2019

The professional income is assessed under head 'PGBP' and not 'Salary'.

TDS u/s. 194J woulds be deducted at 10% of the payment received. Quarterly statement of TDS deduction will be issued by the deductor.

You can declare the income u/s. 44ADA. and offer min. 50% of the receipts as taxable. E.g. 22000 *12 *0.5 = Rs. 1,32,000/- No need to maintain books of accounts. If Total/ aggregate income is below 2.50 lakhs after all other deduction like 80C, 80D, 80TTA etc., you can claim total amount of tax deducted as refund!!