Dear Sir/Madam, I am in 30% bracket. I have income Rs 3L on and above my salary. The TDS 10% have already been deducted and remaining tax 20%, I have to pay. I travel to training location by taxi and paid for myself. Similarly spends on food myself. Do I have to pay 20% or a few deductions can be availed? Please advise
Yes you are professional trainer and it will be covered under business and therefore you can claim certain expense against such income.
Food expense I don't think would be available but travelling expense would be available as deduction.
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Dear Sir,
Hope you are doing well !!
Yes, you can avail deductions on expenses related to your business/profession.
Hi,
- Training income will be considered as professional income and you can avail the benefit u/s 44ADA i.e. 50% of 30 lacs will be considered as taxable income. TDS deducted Rs. 30,000 and tax liability on additional income would be Rs. 4,50,000. Net tax payable would be Rs. 4,20,000.
- If it is not a professional income then 6%/8% of Rs. 3 lacs depending on the nature of training. In such case, there will be tax refund of Rs. 22 k (apx.)
Thanks
Hello,
Yes, your training income would be classified as business/professional income and you can claim deduction for expenses incurred in relation to the training.
Further, you can use Sec. 44AD/ADA, as applicable, to save tax on it.
I hope this answer satisfies your requirement.
Regards,
CA Hunny Badlani
Hi,
You can avail the deductions for expenses mentioned by you and any other expenses incurred for the purpose of providing training services.
You should calculate the net profit and thereon pay taxes on the additional income after considering the taxes deducted so far.
Initially, I had filed ITR2 and after getting your answer, I have to file ITR4 in the response to notice 139(9). Is it right to fil ITR4 (the original was ITR2) in the response to notice 139(9)
Yes ITR can be changed as and when required there is no issue in that. You need to choose the correct ITR.
Yes you can file ITR 4 in the response to notice 139(9).
Yes, you can file ITR-4 in response to notice 139(9).
Hello Sir,
There is no problem in it.
It is absolutely right to file ITR4 in the response to notice 139(9).
Yes, you can file a different ITR form in response to 139(9) notice.
Before claiming the benefit of presumptive taxation, make sure you're eligible for the same. The following professions are eligible for the benefit of presumptive taxation:
If it is a coaching income, 44AD/44ADA can't be used in my opinion.
Hi
Yes,you can opt from another ITR in response to notice.
Hope it helps
Dear Sir,
you can claim all the expenses you have incurred to facilitate the training and only on net off amount tax need to be charged
That should be fine. You can use the correct form now to rectify the defect