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Income tax question? How is this legal?

Started by johnwalker1, April 04, 2020, 07:55:24 PM

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As you would all be aware that there would be many teachers, retired teachers and in some cases older students or home makers who would supplement income through tuition.

I just realized that many of them don't file IT for it.

In one such case, there was a home maker who used to give math tuition for 7-10 grade. There were 2 batches for each (weekend and weekdays): 1-1.5 hours (3 days or 2 days). Each batch had 4-6 students. The costs were from 500 to 1200 a month per student.

Thus if there were 5 students, 2 batches each, 4 grades (7,8,9,10) with a conservative average of 700 rupees a month:

This works out to 5*2*4*700 = 28,000 a month.

The overhead was nothing: old books, home as the center, white board and some regular ink supply.

If my understanding is correct, they would plug this in with the monthly financial requirements (groceries, transport, bills) the husbands salary is entirely saved and can be put for investment (in case of teachers, their school salary)

I've seen this being the case for so many years and so many times, it seems to be working like a well oiled machine with no one catching up or consequences!

How does this work out without the I-T department catching up on it? (i'm just curious as to how it works out)

sai prasad

the statutory obligation cast u/s 139(1) on any one earning income exceeding taxable minimum has to file return of income.if one fails he runs the risk. if he files he can plan the matters. it is not the department which has to keep track but  the  person who earns taxable income  to comply with the legal provisions otherwise face the consequences.


Every person who has a total income that exceeds the exemption limit is liable to furnish Income Tax Return within the due date. Any private, public, domestic or foreign country located and/or doing business.


The question raised is "how  such evation  escapes attention of the Income-tax department" The answer is not the statutory obligation of the citizen, nor consequential penalty and interest on detection  The Income-tax department is not equipped to detect such small evasions, nor all emloyees could be said to be deligent in their work nor many of the Officers have judicious mind.  As the PM often says the Babus have feudalistic outlook and a good number of them are greedy and selfish.  They cannot put the nation first.  The department should come out with innovative ways to plug evasion and transform the society into a tax comlying community.


if they have such a company structure base they will easily acknowledge by the tax service , if the person who teach stand alone than its gonna be hard for the government track the the money unless they client report of the service ,just like a solo tour guide atleast he have good english he could make easy money just by accompany the tourist every where