i am teacher and i run a small coaching . in a year i teach 100 to 200 students only in my home . i also registered my coaching under my municipal corporation . but i dont give any fee slip to students just because i run a small coaching , i have to take care of all expenses .i file income tax return also . is it necessary to maintain record of those students ? and should i use fee receipt ? i dont want to face any problem in future , if IT department ask show me the proof of income . if they ask then can i show only my registration and coaching license registered under my municipal corporation for proofing my income ?
12 September 2014
You may declare your income u/s 44AD in which case you have to declare at least 8% of your gross receipts as your net profit chargeable to tax. You can not claim any expenditure as all expenditure will be deemed to have been allowed out of this 8%. You will not be required to maintain books of account but it is advisable to maintain a record of fee receipts so as to calculate gross receipts.