For an house wife who earns Rs.25000 per month by taking Home Tuitions. For filing income tax which ITR should be used. Some people says ITR 1 can be used and few people tells ITR 2 to be used for Income from Other Sources. Some say it is an business/ profession income so to use ITR 3.
Please clarify which ITR has to be used for this tuition class income. Thanks in advance.
Household tuition income is professional income - file ITR-3 or use presumptive taxation under Section 44ADA with ITR-4 Household tuition income is generally treated as professional income and should be reported under 'Profits and Gains from Business or Profession.' ITR-1 and ITR-2 are not appropriate for such income. File ITR-3 if you maintain books and compute actual profits; alternatively, if eligible and you opt for the presumptive scheme under Section 44ADA you may use ITR-4 (Sugam) and declare 50% of receipts as taxable income, subject to conditions (gross receipts up to Rs.50 lakh and applicable taxpayer types). A contrary view in the discussion questions whether teaching falls within the relevant provisions for presumptive taxation. (AI Summary)
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