Commission income from amway

This query is : Resolved

Guest

Guest (Querist)

27 July 2011 Dear Friends / Experts,

A, a salaried individual has got a sum of less than Rs.3500/- (less TDS) (for FY 2010-11) by way of commission income from AMWAY, as A has been given identification as a Business Owner.

Query

Should A treat this commission income as 'INCOME FROM OTHER SOURCES' or 'Business Income'.

Ans : ..............

I shall wait for your reply.

Thanks.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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27 July 2011 No sir. Pl offer under PGBP. Turn over may be treated as Rs. 3,500/- and Section 44AD may be opted by filing ITR 4S.

hitesh

hitesh (Expert)
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27 July 2011 Nothing material from Assessment perspective... since assessee is salaried,it is presumed he is in full time employment, and this is a part-time and non-routine transaction ony. You can treat the same as Income from other sources..

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C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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27 July 2011 Since amway gives the goods against payment it is showing commission but in fact it is business income and accordingly it is to be shown under the head Business Income by applying the provisions of section 44AD and profit @ 8% on the turnover