one of my freind earned LIC Commission of Rs 14,00,000/- and tds Deducted by LIC is 1,52,840/-. While filling of income tax returs which head i have to taken into account, iTS Income from business/professional or income from other sources, What is the percentage of income to declare to depatment, he is also have income from let out property. Which ITR We have to going to file to dept. pls advice me. There is confusion in theat shall i file ITR 4 OR ITR 2. What are the business expenses i have to show in profit and loos a/c if i show it as a business income pls advice me its v urgent
23 June 2009
See as i seen your case, your frnd have two source of income i.e. income from let out of property and income from Commission. THere is no doubt that the let out income will be taxed u/h Income from house property. While there is a problem to find out the way what will be correct head of income right in this regard i want to share my personal experience with you my frnd one of myclient has Commission income frm Max health Insurance Co. and she showed the same u/h Income from business and profession while the assessment for the said assessment was done, AO asked the client how will you proved me that you have set up a business for this transactions as the same will be done through Telephonic conversation or personal meeting with client or max you can made your adv. in this regard. After all discussion assessee has failed to proved and income was assessed u/h income from other sources. But one thing must be noted you can claim your expenses that have you incurred for such income u/s 57. And for that purpose you will have to filed ITR-2 with the deptt. to avoid any future litigation.
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