Profession or business ?

Hello Everyone,

I am Vinay and want to start a Software Development & Consultancy firm. I want to know whether it will be considered as a "Profession" or "Business" w.r.t. Income Tax.

Please let me know if I need to come up with some more details on it or this much is sufficient to understand & revert on my query.

Replies (6)

In my opinion it will be considered as 'profession' because considering provision of section 44AA following are covered under specified professionals:

 

  1. Technical consultancy and

  2. Information technology professionals.

 

Regards,

Shraddha

If you are holding any professional degree then professional otherwise business.

Profession

 

 

CIT v. Smt. Pratima Saha [2000]

The words ‘technical or professional qualifications’ do not necessarily mean the possession of any certificate, degree or diploma from a recognised institution

The words ‘technical or professional qualifications’ do not necessarily connote a qualification conferred by a recognised university after examining the candidate who has undergone a course of study in a technical subject or a course of study preparing him for a profession like law, accountancy, etc. The term ‘qualification’ must be given a wide meaning as referring to the qualities which are required to be possessed by a person performing the work that he does so as long as that work is capable of being regarded as technical or professional. The word ‘professional’ is a term capable of very broad meaning and would encompass varieties of occupations although the term is capable of being given a limited meaning where the context so requires

Profession.. But i doubt..

Profession : person doing with his own skills

Business : need not nessesary acquire skills

Agree with.... Celiena  goel. it will be a business not a consultancy

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