one of my friend has an income for which tds u/s 194H has been deducted@ 10%.. so it being a commission income, can we have the option of using any deduction for expenses incurred on earning such commission income(its a normal commission).
Additional info : this friend of mine has only salary income other than this commission.
18 July 2014
yes, earning commission is business activity, u can claim business exp to earn this income. but u have to prepare p& l account and bal sheet, as comm income is not covered u/s 44 AD
19 July 2014
this is not a regular commission income...it just happened once... so no chance to treat it as a business activity... so as per me it will b coming under the head ''income from other sources''... so my question is still..can we have expense as deduction from this income and to what extend.
21 July 2014
dear sir, according to me , if u r so keen to treat it as income from other sources, then also u can claim the expenditure wholly and exclusively incurred to eran this income ( sec 57 (iii) but sir, to ur clarification if we read sec 56 (1) , income which do not fall in any other head , then it should be fall under income from other sources. sec 56 (2) to 56 (viii) specifically provides the income which r to be charged under income from other source.
CAclubindia
