ITR 2025: My wife takes home tuitions. Is that income taxable?

Representative image

My wife was earlier salaried person and used to file ITR-1. From the last financial year, she has left her job and now takes tuitions for students in her free time. Although her income from tuitions is below the exemption limit, her total income—including interest income—exceeds the limit. Under which head should the tuition income be reported, and which ITR form should be selected? Please guide.

Expert Advice: In cases where home tuitions are conducted on a small scale, informally, and without a commercial setup, it is generally acceptable to disclose the income under "Income from Other Sources" as a practical approach. Since her total income (including interest) exceeds the basic exemption limit, she is required to file an income tax return.

For return filing purposes, if the gross receipts from tuition do not exceed Rs 50 lakh during the financial year, one is eligible to opt for presumptive taxation under Section 44ADA. Under this provision, 50% of the gross receipts are deemed to be income, and she is not required to maintain books of account or have them audited.

If she prefers to declare actual income after deducting allowable expenses, the income must be reported under "Profits and Gains from Business or Profession" in ITR-3. In such a case, the provisions related to maintenance of books of account under Section 44AA would apply, subject to applicable thresholds.

Alternatively, if she opts to disclose tuition income under "Income from Other Sources", the return may be furnished using ITR-1 or ITR-2, depending on the nature of other income (such as capital gains, if any).