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Audit of coaching institurtion

Sangeeta ( ) (51 Points)

15 September 2016

The assessee is running a Coaching Institution and he is the Director of it. The fee receipts of the institution for FY 15-16 is approx. Rs.36 Lacs. My doubt is whether he is liable for Tax Audit u/s 44AB considering the income as his professional income or this would be his business income? Thanks

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komal choudhary (none) (133 Points)
Replied 15 September 2016

In the publication of the Fiscal Laws Committee of the ICAI,titled "Issues on Tax Audit",it has been opined as follows :-

(a) Educational institution run by a person who does not possess any professional qualification will fall in the category of business.(b)Coaching classes run by a chartered accountant or a person possessing professional qualifications will fall in the category of profession.