Question

Explain the difference between Business and Profession. in point​

Answer 1

Answer:

hi,1. Meaning

Business is an economic activity where people sell goods or services.

Profession is an economic activity where people work with their knowledge and skill.

2. Qualification

No minimum qualification is required in case of business.

Educational or professional degree or specified knowledge is required in case of profession.

3. Transfer of interest

Transfer of interest is possible in case of business.

Generally transfer of interest is not possible in case of profession.

4. Accounting Type

Generally, Manufacturing / Trading / Profit & Loss a/c is maintained in case of Business.

Generally, Income & Expenditure a/c is maintained in case of Profession.

5. Reward

Reward for business is known as ‘profit’

Reward for profession is known as ‘professional fee’

6. Tax Audit  

Tax audit u/s. 44AB is required if annual turnover or gross receipt exceeds Rs. 1cr. (2 cr. for presumptive income scheme u/s 44AD) in case of business.

Tax audit u/s 44AB is required if gross receipt exceeds Rs. 50 lakh in case of a profession.

Explanation:

hope it will help