News Topics

I'm home tutor. I have no other income. I want ...

I'm home tutor. I have no other income. I want to file my income tax return. Please guide.

I'm home tutor. I have no other income. I want to file my income tax return. Please guide.




0
Chiranjibi Chapagain May. 21, 2018

You are a home tutor and you want to file your yearly return of Income for the financial year (FY) 2017-18.

The return for FY 17-18 has to be filed before 31st July, 2018.

Consider the following points:

  1. If your total income doesn't exceed Rs. 2.50 lakhs, which is the basic exemption limit, you can file a nil return and claim a refund of the advance taxes already paid by you.
  2. If your income exceeds Rs 2.50 lakhs but it consists of no income other than the income you receive from your students, you can file ITR-1 sahaj online.
  3. If your income exceeds Rs. 2.50 lakhs and there are other incomes besides the said income of home tutoring, you need to file :
  4. ITR-2: if your income includes Capital gains, income from partnership firm, foreign income and agriculture income.
  5. ITR-3: income from business and profession
  6. ITR-4: Presumptive Income u/s 44
  7. ITR-5: Income of Association of Persons (AOI), Body of Individuals (BOI), firms and limited liability partnership.
  8. ITR-6: for persons not claiming exemption under section 11
  9. ITR-7: Persons and companies under section 139.


Comment for further clarifications... thank you


0
Kanishka Aug. 11, 2018

I understand that, you are a home tutor and you want to file your yearly return of Income for the financial year (FY) 2017-18.

You should understand these 3 things.

Thing # 1 - Type of Income.

Thing # 2 - Way to compute your income.

Thing # 3 - How to file the tax return.

Type of Income:

Income tax Act demands taxpayers (also called as Assessee) to determine the type of income that they earn.

There are 5 types (or you may call heads of income). Tution income is covered under head "Income from Business and Profession". It is a professional income.

Way to compute your income:

Income tax Act, specifies two ways to compute (or calculate) professional income.

Way # 1 - By following normal provisions of the Income-tax Act.

Way # 2 - By opting for "Presumptive tax scheme" under section 44ADA

If you follow way # 1 then

  • you would have to maintain books of accounts. List of books to be maintained are specified under section 44AA and Rule 6F of Income tax.
  • if your income turns out to be less than 50% of total receipts then you need to get tax audit done under section 44AB

If you follow way # 2 then multiply your total receipts with .5, and that is your taxable income. However, you can opt for way # 2 only if your turnover is less than Rs50lac

How to file your tax return:

You can file your returns in form ITR 4 online.

I'm home tutor. I have no other income. I want to file my income tax return. Please guide.




Hi' there!

Would you like to receive a free callback in

Yes
×