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ITR for A.Y. 2019-2020 for a Dance & fitness academy

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Akanlsha S.

C.A. Final Student

27 Points Posted on 17 January 2020

My friend is running dance and fitness classes at a rented property. he himself gives tranning there. I want to know that whether his income covered u/s- 44ADA? or 44AD?

Replies (4)

Quick Summary

This discussion explores whether income from a dance and fitness academy, where the owner also provides training, falls under Section 44ADA (for professionals) or Section 44AD (for businesses) for presumptive taxation. While one viewpoint suggests it's a profession due to specialised skills, the prevailing opinion is that running classes is a business activity, making Section 44AD more applicable as it's not listed under the professions defined in Section 44AA of the Income Tax Act.

Ganapathi Kamath

149 Points Posted on 17 January 2020

Section 44AD is for presumptive taxation of a bisiness, whereas 44ADA is the section for presumptive taxation of professionals. From your above query, one can learn that the Assessee is a Dance and Fitness Trainer. That being said, it requires professional expertise in that particular field. Hence it is very clear that the income may be taxed u/s 44ADA. Hope this helps. Anyone is free to correct me if i am wrong.

Mary Lee

22 Points Posted on 21 May 2020

Oh, how I'm lacking fitness and dancing now in quarantine when all the gyms are closed. Frankly speaking, I gained some kg and I'm very upset because of it. I understand that I must stop eating and start moving more. This isolation and lack of ability to move to affect my figure very negatively. I even started to search and chose different home workouts here https://www.modernfit.com/ to bring the body into shape. But, As it is known proper nutrition makes up 80% of successful results. But, to be honest, I have problems with it. I think that because of the stress I started to eat more. I must see some inspiring photos of people who had lost the excess weight to motivate myself.

Kev Men

486 Points Posted on 13 April 2022

The section 44ADA is for 'professionals' as mentioned u/s 44AA of the Income Tax Act. The act of running dance fitness classes / giving training for the same, does not come under the list of 'professions' as per section 44AA. Hence, the above activity is to be considered as 'business' and can be taxed u/s 44AD for presumptive business.