As per various judgments of karnataka , Delhi and Mumbai high court(s), conducting Home tuition is neither illegal nor a business as long as the following conditions are fulfilled
a) That there is no advertisement soliciting students for home tuitions
b) There are not more than 2 teachers teaching students at home
c) Total number of students present in the premises during tuition hours does not exceed 15.
d) The tuition timings are not more than 28 hours a week.
e) The teachers offering home tuition are not government school teachers or teachers from government aided schools.
Supreme court had categorically stated in the case of Pant Nagar Anandlok CHS Ltd., at Ghatkopar, Mumbai, (Appeal No. 550 of 1985 decided on [deleted] decided by the MSC Appellate Court) it was decided that carrying out activities like conducting yoga classes in a residential flat does not constitute breach of bye-laws of a Co-op Housing Society.
Supreme court had also categorically stated that professionals like Doctors, Lawyers, Chartered Accountants are permitted to carry out their profession from residential apartment and that their activity is not to be construed as Business when operated from a residential apartment.
Hope this information is useful.