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.
Home tuition earning Rs.25,000 monthly should be reported as business/profession; file ITR-3, not ITR-1, and maintain receipts and expense records An individual earning Rs.25,000 monthly from home tuition should generally report that as income from business or profession and file the ITR appropriate for business/professional income (ITR-3 for an individual with income from profits and gains of business or profession). ITR-1 is not permitted where there is income from business or profession; occasional, truly casual receipts might be shown as 'other sources,' but regular tuition activity is typically treated as a business/profession. Maintain records of receipts and expenses; if total taxable income does not exceed the basic exemption threshold, filing requirements may differ. (AI Summary)
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