Head of income

Tax queries 315 views 3 replies

Ahuja Shekhar

Accountant

95 Points Joined December 2013

Dear friends,

My client is having Airtel Agency.

He deposits cash in his Bank Account and does RTGS to Airtel agency of Rs. 4 to 5 Lacs each month. And gets value of same amount plus 1.25% commision value extra. e.g. he purchase value of Rs. 4,00,000/- then he would get value of Rs. 400000+5000-500(tds u/s 94J)=404500/-

In year, near about, Rs. 60,00,000/- tramsactions occured in his Bank account. in fact, Rs. 4,00,000/- hi bar bar ghum rahe hai.. but it does seem k Rs.60 lacs ki transactions ho gyi

uski return kse jaegi.

60,00,000*1.25%=75000/- as commission income

or by any other method

plz tel

Replies (3)

Arif Ali

Apt Co Advisory

1230 Points Joined June 2009

Hi Ahuja,

It is impossible to give the correct answer here. Because here is not clear that how much amount is debited and credited in the account.

However his income will be the commission income only before the dedcution of TDS.

Ahuja Shekhar

Accountant

95 Points Joined December 2013

Amount credited is Rs.60,00,000/- i.e. 60 entries of Rs. 1,00,000/- of cash deposited and same day debited through RTGS to Airtel Agency.

I agree that this income would be commision, but let me know one thing, is it compulsary to file ITR-4 in case of commission income, or ITR-2 can be filed....