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Whether Profession or business?

28 February 2010

Dear friends,

A is running a CA coaching classes. Whether for the purposes of Section 44AB i.e. tax audit, the receipts will be considered as from profession or business.?

If A is running a coaching class for 10th and 12th and is does not have any professional degree than what will be the situation??

Thx in adv...

Chintan

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15 Replies

Amir (Learner) (4016 Points)
Replied 28 February 2010

Dear Chintan,

Good one yaar......

I think in both cases it will be classified as Business only.........

Lets see what others have to say..........

Amit Nishania (CA Final - Student) (495 Points)
Replied 28 February 2010

Providing Tution comes under service and once it has been kept under the scanner of service tax liability.

ravi. (article trainee) (424 Points)
Replied 28 February 2010

in both the cases, there are receipts.. so accordingly, both the receipts will be classified under "Profession"..

it cannot be business income..but i m doubtful regarding the classification of income where there is income from 10 or 12 th std...so lets c..

CA. Abhishek K. Pandey (Manager (Advance)) (901 Points)
Replied 28 February 2010

I think it would be profession.

Although tax treatment would be same in both cases. But, we should be able to classify.

Bala (Student) (498 Points)
Replied 28 February 2010

I think both would be professional income

VIPIN KUMAR (Practicing) (309 Points)
Replied 28 February 2010

Dear Chintan

I think the receipts will be considered as from business because coaching classes is a business for Mr. A. and in 2nd situation is also called as business because Mr. A has received receipt from his technical knowledge and it will be treated as a business income.

manish (Article Assitant) (358 Points)
Replied 01 March 2010

in this case, the Income generate from his profession field by providing the service for giving the coaching classes, it's related to the profession. So in my opinion it's also the profession income