Reg. required itr form

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2013 Dear Friends,

A person who earn income from salary & commission. his income tax return will go in which ITR form 1 or any other please tell me. Its a urgent matter.

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 March 2013 Itr-1 is sufficient if commission income is other income then show the commission income at the income from other sources column on such ITR. In case commission is business income then go with ITR-4.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2013 Dear Tirumala Ji,

Commission received in form of incentive than ITR 1 is sufficent fot that case or not.

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Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 March 2013 If commission also received from the same employer i.e who paying salary then it commission also treated as salary then ITR-1 sufficient. You are saying commission received in the form of Incentive so i thinking such commission is paying by the employer is it correct? if yes then it also salary and itr-1 sufficient and show at the salary column including taxable salary received. Otherwise(i.e commission received from other than employer) consider it as other income and file itr-1 by showing at income from other sources column.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2013 Jai Sai Ram
Dear,
He received incentive form same employer but he deduct TDS @10% so it is treated as a salary

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 March 2013 Is he issued form 16A for the incentive payment.

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 March 2013 According to the section 15 of income tax act any amount due to or received by an employee including arrears of salary from an employer or former employer and falling within the purview of the meaning of the ter "salary" is chargeable to tax under the head "salaries". The term salary has explained in section 17(1) as per this section salary include Wages,any annuity of pension,any gratuity,any fees,commissions,perquisites or profits in lieu of or in addition to any salary or wages,any advance salary,leave encashment. So in one word explanation if employer and employee relation exists and any income paid by the employer to employee shall be considered as salary. So if he given form 16A for such commission in your case then it is the mistake of the employer so you offer it as other income and claim TDS credit or refund if any and for this also ITR-1 sufficient. In case he included it along with salary and issued form 16 then show it under as salary income.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2013 Om Sai Ram,

Employer issued form 16A to him so its comes under income form other sources it is correct or not.

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Santosh Mishra

Santosh Mishra (Expert)
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05 March 2013 Employer can not issue Form 16A to it employee, as there is employer-employee relationship and income is taxed under the head salary.

Have they issued Form 16 also?

Please confirm whether there is contract of employment?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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05 March 2013 According to the income tax act employer didn't issue form 16A(if employer employee relationship existed) But your employer issued form 16A for the payment of insentive commission so it is mistake by the employer(i.e default by the employer) so to claim TDS credit we should be disclose it under form16A TDS schedule to show their we have to consider it as Income from other sources.
So disclose such commission income under income from other sources and then claim such TDS credit by disclosing it at under schedule TDS for form 16A.
For this also ITR-1 sufficient.

OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

05 March 2013 Thanks to all

Santosh Mishra

Santosh Mishra (Expert)
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05 March 2013 But in this you would require to assess and pay differential tax amount before submitting tax return.

Since they have recovered tax at the rate of 10% only, but you are require to pay taxes according to tax slab applicable for you.

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