Sir - my wife started taking maths tuition and soon the no. of students grew - and we filed for GST as the gross income entered GST limit. We have been paying GST for FY'18-19 but want to know if we should file a) Normal returns with audit, or b) Presumptive - Profession (Sec 44 ADA), or c) Presumptive - Business (Sec 44 AD), Whilst teaching is not listed under Sec 44 ADA even though it is imparting knowledge, can it be considered as a business, even though it does not sound logical as well. So overall a bit confused. Any inputs most welcome, and thanks much... in advance!
Dear Sir,
Hope you are doing well !!
Either you can show it as an income from other sources or PGBP.
If the coaching receipts are substantial and there are separate expenses like staffing, coaching premises rentals, computers, etc, then it shall be appropriate to show it under PGBP.
On the contrary if the scale is small and there no substantial expenses relating to that, offer it as income from other sources.
You can also take the benefit of section 44AD subject to litigation.
Generally if it is done on a small scale i.e. personal tuition it is generally shown as income from other sources but if you are saying you are registered under GST and all which means you are doing it as a profession so I would suggest you to file income u/s 44ADA and show 50% of your receipt as income because providing education is not a business teaching is a profession.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
- It is better to file ITR-3.
Sec 44ADA does not include teaching profession; hence she cannot treat tuition income under 44ADA.
Sec 44AD covers all business except plying goods carriage and profession covered under 44AA. Hence, she can be said into the profession of teaching and govern by sec 44AD. The sec 44AD only excludes profession covered under 44AA and not all. This is bit technical, in case you need to understand in detail, it is advisable to chat over a call.
In nutshell, she can claim benefit under 44AD and file her return.
Dear Sir,
Option C is more appropriate.
However, you can not opt the section 44ADA.
Hi,
It will be profession and you can use 44ADA.
You can put code 16019.
