Hax to save Tax for Professionals

Important Links

Key Takeaways

Business

  • What is Business?
    • As per Section 2(13) of the Income Tax Act 1961: 'Business' includes any trade, commerce, or manufacture or any adventure or concern like trade, commerce, or manufacture.
  • Structures of doing business
    • Proprietorship → Sole person using his/her name with unlimited liability
    • Partnership → Two or more partners working with unlimited liability
    • Limited Liability Partnership (LLP)
    • Private Limited Company → Startups
    • Public Limited Company
 

Profession

  • There are two kinds of professions.
      1. Specified
        1. Legal
        2. Medical
        3. Engineering
        4. Architectural
        5. Accountancy
        6. Technical Consultancy
        7. Interior Decoration or
        8. Other notified profession.
          1. Authorized Representative: A person who represents any other person, on payment of any fee or remuneration, before any tribunal or authority constituted or appointed by or under the law for the being in fore but does not include any employee of the person so represented or a person carrying on legal profession or a person carrying on the profession of accountancy.
          2. Film artist: Film artist means any person engaged in his professional capacity in the production of a cinematograph film, whether produced by him or by any other person as an actor, a cameraman, a director, a music director, an art director, a dance director, an editor, a singer, a lyricist, a story writer, a screenplay writer, a dialogue writer and dress designer.
          3. Company Secretary
          4. Information Technology persons
      1. Non-specified
        1. Sportsman
        2. Circus man
        3. Yoga Instructor
        4. Astrologer, etc.
  • Structures under profession:
    • Proprietorship
    • Partnership
    • LLP (Limited Liability Partnership) / OPC (One Person Company)
 

Module 4: How to compute income from Profession

 

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