Post office commission income

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2017 an assesee is a house wife and in part time she works as post office commission agent and receive post office commision income on which TDS has been deducted for which refund claim is to be filled as her total income does not exceed B.E.L.
now my question is under which head above income of post office commission is to be disclosed?and which ITR from can be used for A.Y.207-18?
NOTE:she has other income is rent from vacant plot which is cover under house property.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

18 September 2017 You have to show such income in B&P. For same use ITR-3.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

18 September 2017 Also income from vacant land is taxable under OS not H.P.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2017 Thank you mam for your reply but she is doing it for a part time and not maintaining the books of account and we have just the figure of commission income of rs. 66000,how and what can I disclose in itr for b&p?please help me with this...

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2017 And since last 3 years, assesse has shown post office commission income under ifos and income from vacant plot under hp and successfully has received refund, is it advisable to continue with that... Please give proper guidance this regard...

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

18 September 2017 You can go for IFOS if you are doing same for past 3 years. It os also correct.

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2017 Thank you very much mam for this quick reply... And mam vacant land under hp is also correct?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

18 September 2017 No its not correct as it is not a residential property.So you have to show such rent under OS

Upgrade to CAclubindia Pro. Subscribe Now!

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
Follow

18 September 2017 Rashmi ji is correct. Income from land is taxable under other sources as there is no residential property.

If allowed, then it will be a loss to IT as people will show and claim 30% deduction for income from land

K Srinivas, CMA CS

K Srinivas, CMA CS (Expert)
Follow

18 September 2017 Regarding post office commission, it wll be appropriate to show under Business or profession. You can report the same under "No accounts case" in ITR 3

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

18 September 2017 Agreed completely with K Srinivas on this matter.

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2017 Thank you very much to both of you for your reply. Please help me with my one more doubt that is, will I get into trouble if change the head of income as it was shown under IFOS in earlier years and now if I show it under B&P?

Upgrade to CAclubindia Pro. Subscribe Now!

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

19 September 2017 No trouble if you are correcting the heada of income.

Querist : Anonymous

Querist : Anonymous (Querist)

19 September 2017 Thank you very much mam for helping me in this practical aspect.. Mam, my one more question is if I show post office commission under B&P and rent from plot under IFOS then can i claim expenses (notional) from both the income b'coz income will cross B.E.L if i show rent of plot under ifos b'coz 30% deduction will not be allowed under ifos?

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

19 September 2017 You can claim deduction of expenses in commission income.

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

20 September 2017 Thank you mam for your answer but mam therotically expenses can be claimed in IFOS head also u/s 57,can I claim expenses from rent of plot like municipal tax, collection charges etc, please guide me in a practical way...

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

20 September 2017 Yes you can........

Querist : Anonymous

Querist : Anonymous (Querist)

21 September 2017 thank you very much mam for all your guidance...

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)
Follow

21 September 2017 Welcome.....