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Commission

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)

30 April 2018

COMMISSION BUSINESS- (COMMISSION RECEIVED FROM BROKERAGE/VODAFONE/FRANCHISE COMMISSION/TRANSPORT)

WHERE TO CALCULATE? WHETHER 44AD OR 44 ADA?

BECAUSE AS A COMMISSION AGENT, WE DO BANK TRANSACTION FOR (for example- sales for company Rs.1 Crore, but my commission only 6% here the sales is not belongs to me, for company.) but Bank transaction in my name is 1 Crore.

please clarify.

Thanks,

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8 Replies

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 30 April 2018

As per my view.,

Income Calculated only on Commission...
Normal provision is applicable... No way for 44ad or 44ada...

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Deepika Yadav (561 Points)
Replied 30 April 2018

Section 44AD wont apply in case of Agency Business as well as in case of a business earning income from Commission or Brokerage.

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 30 April 2018

Which businesses are not eligible for presumptive taxation scheme?

The scheme of section 44AD is designed to give relief to small taxpayers engaged in any business, except the following businesses:

Business of plying, hiring or leasing goods carriages referred to in sections 44AE.A person who is carrying on any agency business.A person who is earning income in the nature of commission or brokerageAny business whose total turnover or gross receipts exceeds two crore rupees.

Apart from above discussed businesses, a person carrying on profession as referred to insection 44AA(1) is not eligible for presumptive taxation scheme under section 44AD.

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 30 April 2018

Originally posted by : RAJA P M
	As per my view., Income Calculated only on Commission...Normal provision is applicable... No way for 44ad or 44ada...

It means without audit report can I declare income for the above, ( after book expenses relating to that business ) as Rs.60000/- Sr? i.e below limit.

Deepika Yadav (561 Points)
Replied 30 April 2018

Yes, you can declare income after deducting book expenses
You have no required to audit u/s 44 ab

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MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 01 May 2018

Thanks Ji,

Also , just use ITR 1 is enough?

MURALIDOSS (INCOME TAX PRACTITIONER) (1329 Points)
Replied 01 May 2018

Because presently only ITR 1 only available for ass.year 2018-19

Deepika Yadav (561 Points)
Replied 01 May 2018

You have to file your return of income in form ITR 3 in which you will disclose the business income
ITR 1 is not for the individual who has business income