Who can use 16019 code to file ITR under 44ADA

Hi,

You will have to file ITR 3 under code 17006.

Coming to your query, only eligible professionals can use section 44ADA. Since, coaching is not eligible profession, you can't use it.

16019 is meant for other professionals which are not present in list of business codes.

Hi

Your profession is not an eligible profession under section 44ADA. So you cannot file taxes under this presumptive taxation scheme.

You need to file ITR 3 under code 17006 showing all your income and expenses.

ITR 4 or ITR 3

Answer is ITR 4 should be used for presumptive income.

If coaching is not your main profession, you can use ITR 3 or ITR 1 and report other income. Some expenses are also allowed to be reported under section 57.

Coaching is listed under 17006.

16019 shall be used if your code is not specifically listed.

Hi,

You will need to file ITR 3 under code 17006.

Since coaching is not a prescribed profession u/s 44 ADA, you cannot file your return under the presumptive taxation scheme.

Hope that clarifies.

Regards,

Nikhil.

Dear Sir,

Hope you are doing well !

Only eligible professional can take the benefit of presumptive taxation scheme u/s 44ADA.

Since, coaching is not covered under eligible professional definition.

You have to file IT3 under code 17006.

Thanks & Regards,

Payal Chhajed

Further, 16019 code is provided for eligible professional who can take the benefit of presumptive taxation scheme u/s 44ADA.

N.E.C is for not elsewhere covered as the activity of coaching class is specifically covered under code 17006, your case will fall under 44AD as it is not a specified profession under 44ADA. You may file ITR-4 with the fact in mind that income of 8% of gross receipts or actual profit whichever is higher is to be shown.

Dear Sir,

You can not opt 44ADA because coaching service is not a prescribed profession u/s 44ADA.

But you may opt 44AD subject to following conditions:

a. Your turnover must be less than Rs 2 crores

b. Your NET income shall be considered as 8% of your turnover (net income will be considered 6% in case of digital receipts)

c. You don’t have to maintain accounting records

d. You don’t have to pay advance tax (from FY 16-17, assessee opting for presumptive taxation has to pay 100% advance tax by 15th March of that particular financial year)

e. You don’t have to get your accounting records audited

f. You can file your tax return in ITR-4 a much shorter and simpler form than ITR-3

Warm Regards,

Karishma Chhajer

CODE 16019 : PROFESSION -OTHER

CODE 17006 : EDUCATIONAL SERVICE : COACHING CENTRE AND TUITION

YOU HAVE TO COME UNDER THE CATEGORY OF 17006 BECAUSE

01. TUITION IS NOT DEFINED UNDER THE DEFINITION OF PROFESSION

02. YOU BUSINESS IS DEFINED IN SPECIFIC CATEGORY AND PROFESSION -OTHER IS NOT DEFINED CATEGORY AND HENCE YOUR CASE FALL UNDER THE SPECIFIC CATEGORY

YOU HAVE TO FILE RETURN UNDER ITR 4-SUGAM UNDER SECTION 44AD

Dear Sir,

1. Section 44ADA is for an assesee who has income from profession. As per Income Tax Act,1961, Managing coaching class is not included in the term Profession. Hence you cannot file your return under section 44ADA.

2. It is advisable to file ITR-3 wherein you can claim expenses incurred by you on actual basis and pay tax on actual net profit.

3. The code you can use while filing income tax return is 17006 as it specifically states the nature of service provided by you unlike 16019 which is used when the nature of service is not specified elsewhere.

Hope this resolves your queries.

16019 is used by professionals whose profession is not listed any where.Your is specifically covered under 17006.

For coaching class you can not show income under section 44ADA, however you can show income under section 44AD with code 16019.

You need to file ITR-3

If providing professional service as per u/s 44AA then can file u/s 44ADA other wise u/s 44AD