12 May 2012
ONE OF MY CLIENTS HAS AGREEMENT WITH HDFC BANK FOR COLLECTING CREDIT CARD DUES ON BANK BEHALF. FOR THIS, BANK GIVES COMMISSION TO MY CLIENT AFTER DEDUCTING TDS U/S 194J i.e. TREATING IT AS PROFESSIONAL RECEIPTS. FOR A.YR 2011-2012, HIS TOTAL RECEIPTS WERE NEAR 39 LAKH. I FILED ITR U/S 44AD DECLARING DEEMED PROFITS @ 10% AND CLAIMED REFUND OF NEAR 3.5 LAKH RUPEES. BUT CIT NOTED THAT THE TDS HAS BEEN DEDUCTED U/S 194J,SO, THE ASSESSEE IS A PROFESSIONAL AND CAN NOT FILE ITR U/S 44AD AND WAS LIABLE TO TAX AUDIT. BUT IN MY VIEW, HDFC BANK HAS DEDUCTED TDS UNDER WRONG SECTION. THE CORRECT SECTION SHOULD HAVE BEEN 194H AS THIS IS NOT PROFESSION BUT BUSINESS ONLY. I REQUEST THE EXPERIENCED EXPERTS TO HELP ME WITH THEIR VIEWS AND GUIDES.
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