Itr form for salary income with commission incom
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
14 April 2018
If a person has prominently salary income as full time job and aslo commission income to some extent, against which (commission income) TDS has been deducted by commission paying company. My question is which form to use for filing IT returns and can he show commission income in head of income from other source in Form ITR-1? If commission income shown in head income form other source, whether IT dept will match the details with Form 26As and how? Plz guide with detailed purview...
14 April 2018
you need to file ITR_3......
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 April 2018
Thanks for reply Sri Nikhil Sir...
What if ITR 1 is filed by showing commission income in head of Income from other source?
What if ITR 1 is filed by showing commission income in head of Income from other source?
15 April 2018
If your main vocation is employment and commission earnings is subordinate or the amount is megre or not consistent, you can go for ITR-1. IT department will match
commission income with 26AS in which ,generally. tax is deducted u/s 194H.
commission income with 26AS in which ,generally. tax is deducted u/s 194H.
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 April 2018
Sri B. Chakrapani sir... Thanks a lot for your reply... If commission income shown in ITR-1 (around 65k) and TDS details as deducted under 194H is shown in respective schedule how IT dept will be satisfied by matching the same with Form 26AS. Plz illustrate in detail...
02 August 2024
When filing your income tax return (ITR) and showing commission income along with the corresponding TDS details, it's crucial to ensure that the information matches the details shown in Form 26AS to avoid discrepancies and potential issues with the Income Tax Department. Here's a detailed explanation of how this process works:
### 1. **Understanding Form 26AS and Its Role**
- **Form 26AS** is a consolidated tax statement that shows all the TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) against your PAN. It also includes details of advance tax, self-assessment tax paid, and refund status.
- **TDS under Section 194H** is applicable on commission or brokerage. When TDS is deducted under this section, it should be reflected in Form 26AS.
### 2. **Filing ITR-1 with Commission Income and TDS**
**Steps to Show Commission Income and TDS in ITR-1:**
1. **Income Details:**
- In **ITR-1**, report your commission income in the section for **“Income from Other Sources”**.
- Enter the amount of commission income (e.g., ₹65,000) in the relevant field provided for income details.
2. **TDS Details:**
- **Schedule TDS1** in ITR-1 is used to report TDS details.
- Under **“Part B – TDS Schedule”**, fill in the TDS details as per the Form 26AS:
- **Section Code**: Enter `194H` for commission.
- **TDS Amount**: Enter the amount of TDS deducted as shown in Form 26AS (e.g., ₹6,500).
3. **Verification:**
- Make sure that the TDS details you enter in the ITR match the amounts shown in Form 26AS for Section 194H.
- The **“Amount of TDS”** should correspond to what was deducted and shown in Form 26AS.
### 3. **How the IT Department Matches Information**
The Income Tax Department follows these steps to match the information:
1. **Cross-Verification:**
- The IT department will cross-verify the commission income and TDS details reported in your ITR with the data in Form 26AS.
- They will check if the TDS deducted by the payer is correctly reported and matches the amount claimed in your return.
2. **Automated Systems:**
- The IT department uses automated systems to check the consistency between the ITR data and Form 26AS.
- Any discrepancies or mismatches may trigger an alert for further scrutiny.
3. **Rectification of Errors:**
- If there is a discrepancy between the income shown in your ITR and the TDS shown in Form 26AS, you may receive a notice or demand from the IT department.
- It’s essential to ensure all the figures are accurate to avoid such issues.
### 4. **Illustrative Example**
Let’s illustrate with an example:
- **Commission Income**: ₹65,000
- **TDS Deducted**: ₹6,500 (under Section 194H)
- **Form 26AS**: Shows TDS of ₹6,500 against your PAN for Section 194H.
**In ITR-1:**
- **Income from Other Sources**: ₹65,000 (Commission Income)
- **Schedule TDS1**:
- **Section Code**: `194H`
- **TDS Amount**: ₹6,500
**Verification:**
- **Form 26AS** should also show ₹6,500 under Section 194H.
- The IT department will verify that your reported TDS amount matches Form 26AS.
### 5. **Action if Discrepancies Occur**
If you find any discrepancies between your ITR and Form 26AS, take the following steps:
1. **Correct Your ITR**: File a revised return if there were errors in the initial ITR.
2. **Communicate with the Deductor**: If the error is on the deductor’s part, ensure they correct the Form 26AS by updating the TDS return.
3. **Respond to Notices**: If you receive any notices from the IT department regarding discrepancies, respond promptly with the correct details.
By ensuring that your commission income and TDS details are accurately reported and match Form 26AS, you can avoid potential issues and ensure a smooth processing of your return.
### 1. **Understanding Form 26AS and Its Role**
- **Form 26AS** is a consolidated tax statement that shows all the TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) against your PAN. It also includes details of advance tax, self-assessment tax paid, and refund status.
- **TDS under Section 194H** is applicable on commission or brokerage. When TDS is deducted under this section, it should be reflected in Form 26AS.
### 2. **Filing ITR-1 with Commission Income and TDS**
**Steps to Show Commission Income and TDS in ITR-1:**
1. **Income Details:**
- In **ITR-1**, report your commission income in the section for **“Income from Other Sources”**.
- Enter the amount of commission income (e.g., ₹65,000) in the relevant field provided for income details.
2. **TDS Details:**
- **Schedule TDS1** in ITR-1 is used to report TDS details.
- Under **“Part B – TDS Schedule”**, fill in the TDS details as per the Form 26AS:
- **Section Code**: Enter `194H` for commission.
- **TDS Amount**: Enter the amount of TDS deducted as shown in Form 26AS (e.g., ₹6,500).
3. **Verification:**
- Make sure that the TDS details you enter in the ITR match the amounts shown in Form 26AS for Section 194H.
- The **“Amount of TDS”** should correspond to what was deducted and shown in Form 26AS.
### 3. **How the IT Department Matches Information**
The Income Tax Department follows these steps to match the information:
1. **Cross-Verification:**
- The IT department will cross-verify the commission income and TDS details reported in your ITR with the data in Form 26AS.
- They will check if the TDS deducted by the payer is correctly reported and matches the amount claimed in your return.
2. **Automated Systems:**
- The IT department uses automated systems to check the consistency between the ITR data and Form 26AS.
- Any discrepancies or mismatches may trigger an alert for further scrutiny.
3. **Rectification of Errors:**
- If there is a discrepancy between the income shown in your ITR and the TDS shown in Form 26AS, you may receive a notice or demand from the IT department.
- It’s essential to ensure all the figures are accurate to avoid such issues.
### 4. **Illustrative Example**
Let’s illustrate with an example:
- **Commission Income**: ₹65,000
- **TDS Deducted**: ₹6,500 (under Section 194H)
- **Form 26AS**: Shows TDS of ₹6,500 against your PAN for Section 194H.
**In ITR-1:**
- **Income from Other Sources**: ₹65,000 (Commission Income)
- **Schedule TDS1**:
- **Section Code**: `194H`
- **TDS Amount**: ₹6,500
**Verification:**
- **Form 26AS** should also show ₹6,500 under Section 194H.
- The IT department will verify that your reported TDS amount matches Form 26AS.
### 5. **Action if Discrepancies Occur**
If you find any discrepancies between your ITR and Form 26AS, take the following steps:
1. **Correct Your ITR**: File a revised return if there were errors in the initial ITR.
2. **Communicate with the Deductor**: If the error is on the deductor’s part, ensure they correct the Form 26AS by updating the TDS return.
3. **Respond to Notices**: If you receive any notices from the IT department regarding discrepancies, respond promptly with the correct details.
By ensuring that your commission income and TDS details are accurately reported and match Form 26AS, you can avoid potential issues and ensure a smooth processing of your return.
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