This guide gives the basics a counsellor in India should know before the first fee arrives. It is information, not tax advice. Rules and limits change each year, so check the official sources named below, and confirm your own case with a chartered accountant (CA).
Two points have no clear official answer, and we say so where they come up. Do not rely on a blog, including this one, to settle them.
GST: when you must register
GST registration for services is required once your aggregate turnover in a financial year crosses Rs 20 lakh. In some states the limit is Rs 10 lakh. The rules and the exact list of states are on the GST portal and at cbic-gst.gov.in. Check your state there.
Below the limit you do not have to register, so you can accept payments without a GST number. Some people register earlier by choice, for example to claim tax credit on business purchases. That is a choice to discuss with a CA, not a requirement.
Are counselling fees exempt from GST?
GST law exempts certain healthcare services by clinical establishments and authorised medical practitioners. Whether fees for counselling by a counsellor or psychologist qualify for that exemption has no clear official answer that we could point to.
The answer may depend on who you are, where you practice and how your work is described. Until you have a written view from a CA, do not assume your fees are exempt or taxable. This also matters for your turnover limit, so settle it before you get close to Rs 20 lakh.
Income tax: the presumptive scheme (44ADA, now section 58)
Section 44ADA of the Income-tax Act, 1961 lets certain professionals declare 50% of their receipts as profit, instead of keeping detailed books for every expense. The receipts limit is Rs 50 lakh. It rises to Rs 75 lakh if at least 95% of receipts come in digital form, such as UPI or bank transfer. From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act, and the presumptive scheme for professionals moves to its section 58 with the same 50% rule, so a CA may name either section. The official source is incometax.gov.in.
The law names the professions that can use it, and also allows others notified by the government. Whether counselling counts as one of them has no clear official answer. Some professionals file under 44ADA, others keep full books. Ask a CA before you choose, since the scheme affects which form you file and what you can claim.
Even under a presumptive scheme, keep your records: payment confirmations, a list of sessions and your bank statements. Digital payments help you meet the 95% condition, which is one reason to avoid taking fees in cash.
Savings account or current account
You are not breaking any law by receiving professional fees in a savings account. A current account is not a legal requirement for a counsellor with no business registration.
A separate account for practice money is still wise. Your records stay clean, you can show a CA one statement instead of sorting a mixed one, and you can see what the practice earned. Ask your bank about minimum balance, charges and whether it needs any document to open a current account.
A short list to take to your CA
Bring these questions: Do my fees fall under a GST exemption? Should I register at a lower limit? Can I file under 44ADA as a counsellor? Which account should I use? What records should I keep, and for how long? What advance tax do I owe this year?
Bring a sample of your bills or payment records so the CA can see what you actually do.
Where Leshya fits
Leshya keeps a record of each booking and payment, and shows your earnings and withdrawals in one place, which gives your CA a clean trail. It does not give tax advice and it does not decide how your fees are treated.
Plan details are on the counsellor page.
Common questions
Not below the registration limit, which for services is Rs 20 lakh of turnover in a year, or Rs 10 lakh in some states. Check cbic-gst.gov.in for your state and confirm with a CA.
