Income Tax for Professionals

The dictionary meaning of profession is quite different from the meaning under Income Tax Act. As per the income tax only the following are considered as profession

  1. Legal : Lawyer / Advocate / Notary Public
  2. Medical : Doctors / Dentists
  3. Engineering : Civil / Mechanical / Software
  4. Architectural Services : Architect / Interior Designer
  5. Accountancy : Chartered Accountant / Company Secretary / Cost Works Accountant / Tax Consultants

So broadly income under business or profession can be differentiated in the following manner

  1. Business : Retail / Wholesale / Manufacturing (Anything to do with goods)
  2. Profession : As mentioned above
  3. Services : Everything else which are not covered above

The understanding is very important with respect to declaring of income on presumptive basis.

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