Friends,
How to show income from private tuition’s in income tax return and do i need to keep track record of all students that I have taught.
First of all , you should know that your liability to file income tax return comes only when you earn gross income exceeding Rs 1,60,000 from all source (in case you are male below 65 years, in case of woman , amount is Rs 1,90,000 and in case of Sr. Citizen Rs 2,40,000). (Download Last Ten Years Income Tax Slab Rates HERE ) Remember there is no prescribed books of accounts for tutor and the whole exercise is only for your benefit that you have evidence of your earning.
If you want to keep some kind of evidence in place for tuition earning, do following
1. Keep a register of students depicting address with PIN code and subjects you taught.
2. Issue cash memo to your students.
3. Still better , if you get a cheque payments.
4. Also keep a general register where day to day expense for earning such tuition income is recorded. These expense like-vehicle, phone, Internet ,paper and books can be claimed as expense.
At the end of year, prepare an income & expenditure account and file the return of income in ITR-4.
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How to show income from private tuition’s in income tax return and do i need to keep track record of all students that I have taught.
First of all , you should know that your liability to file income tax return comes only when you earn gross income exceeding Rs 1,60,000 from all source (in case you are male below 65 years, in case of woman , amount is Rs 1,90,000 and in case of Sr. Citizen Rs 2,40,000). (Download Last Ten Years Income Tax Slab Rates HERE ) Remember there is no prescribed books of accounts for tutor and the whole exercise is only for your benefit that you have evidence of your earning.
If you want to keep some kind of evidence in place for tuition earning, do following
1. Keep a register of students depicting address with PIN code and subjects you taught.
2. Issue cash memo to your students.
3. Still better , if you get a cheque payments.
4. Also keep a general register where day to day expense for earning such tuition income is recorded. These expense like-vehicle, phone, Internet ,paper and books can be claimed as expense.
At the end of year, prepare an income & expenditure account and file the return of income in ITR-4.
Don't Download any thing before free Registration on the TOP of this site and check your Inbox for clicking on activation link of Feed Burner.
