ITR Revenue Categorization
ITR Revenue Categorization, Restaurants and hotels need to categorize their earnings as either ‘business income’ or ‘professional income’ when filing for ITR.
Business income is the income that a business derives from its operations, while professional income is the income that a professional derives from their services.
In general, restaurants and hotels should classify their income as business income. This is because the income that they derive from their operations is derived from the sale of goods and services, which is the definition of business income.
However, there are some cases where restaurants and hotels may need to classify their income as professional income. For example, if a restaurant or hotel provides catering services, the income from these services would be classified as professional income.
The specific classification of income for a restaurant or hotel will depend on the specific facts and circumstances of the business. If you are unsure how to classify your income, you should consult with a tax advisor.
To visit: https://www.mca.gov.in/
For further details access our website: https://vibrantfinserv.com