I am a housewife earning ₹20,000 per month from home tuition. How should I report it in ITR?

Kalyani is a housewife who earns some money by giving home tuition. She also invests the income in shares and NCDs. But her total income would not be above ₹4 lakh. Now that the ITR filing season has started, Kalyani wants to know how to report her income in ITR, especially which ITR form she should use.

In a recent email, Kalyani shared the following details:

I am a housewife and earn money doing home tuition (average ₹20,000 per month). I don't work and don't have a salary income. This earning I invest in shares and NCDs. So have LTCG/STCG and interest income. I don't have any other sources of income. All income together would not exceed the basic limit of ₹4 lakh.

• Which ITR would apply to me? Should I file my returns in ITR-4?

• Should I declare tuition income as Income from Profession, or can I disclose this income as Income from other sources?

Please note that the basic exemption limit for FY 2024-25 is ₹3 lakh under the New Tax Regime and ₹2.5 lakh under the old tax regime. The basic exemption limit for FY 2025-26 is ₹4 lakh under the New Tax Regime and ₹2.5 lakh under the Old Tax Regime.

This year, taxpayers like Kalyani have to file ITR for FY 2024-25. Hence, the applicable basic exemption limit in her case would be either ₹3 lakh under the new regime or ₹2.5 lakh under the old regime, depending on the tax regime of her choice.

Now, coming to the queries about the ITR form and declaration of the tuition income.

Following is a detailed answer to Kalyani's query provided by CA Dr Suresh Surana:

An individual earning an average of ₹20,000 per month from home tuitions and deriving capital gains (LTCG/STCG) and interest income from investments, with total income not exceeding ₹4 lakh during the financial year, is required to assess the correct ITR form and classification of income based on the nature of activities.

• ITR-1 and ITR-4 are not applicable in this case, as both forms do not support reporting of capital gains (except long-term capital gains exempt up to ₹1.25 lakhs under section 112A).

• ITR-2 may be used if tuition receipts are reported under "Income from Other Sources".

• ITR-3 would be required if the tuition receipts are classified as "Income from Profession", considering teaching is a notified profession under Section 44AA of the Income-tax Act.

• ITR-4 (Sugam), which allows presumptive taxation under Section 44ADA, is not suitable here as it does not accommodate capital gains income.

The classification of tuition income would be either as “Income from Business/Profession” or “Income from Other Sources”

Where teaching is carried out in a structured and continuous manner with professional intent, the income is correctly classified as “Income from Profession”.

In cases where home tuitions are conducted on a small scale, informally, and without a commercial setup, it is acceptable to disclose the income under “Income from Other Sources” as a matter of practical approach.