Treatment of commision income

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TR Nagaraja (Querist)
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12 May 2009 i hav a business of Manfacuring units. What ever amount received from debtors deposited into bank. Every thing is clear cut on sales bills and collection of amount. Apart from business i have received commission from our clients, towards commission for some works. they are deducted TDS at 10.3%. Cheques issued in my name and deposited in my S.B. aCCOUNT I Have to declare this income to department. My question is how include income in business, and while Entering in the software under which head i have to show and profit loss a/c i have to show two account one from buiness and one from commission income. HOW CEN I SHOW?

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)
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13 May 2009 This will be shown under Income from other Source and P&L credit side.

TR Nagaraja

TR Nagaraja (Querist)
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13 May 2009 if commission cheque deposited in to personal S.B account not in business current a/c Then ? As per your answer credited to profit and lose a/c and Debited to which a/c ?

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jegannath G

jegannath G (Expert)
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13 May 2009 it will be income from other sources only. but should be debited to your personal capital account

TR Nagaraja

TR Nagaraja (Querist)
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14 May 2009 In our balance sheet our capital is around 5 lakhs but if i debited commission income from capital around 8 laksh, captial wll become negative, Shall we show it as it is? it is audit case under section 44AB.