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Itr-4 filed for commission income(194h)

Sankaradhayalan (Accountant) (25 Points)

14 May 2018

I AM DOING PAYMENT COLLECTION AGENCING RECEIVED THE COMMISSION FOR THEIR PAYMENTS THEY DEDUCT TDS @ 5% UNDER SECTION 194H.I FILED ITR-4 FOR THE AY 2017-18.NOW I RECEIVED NOTICE 143(1)A MISMATCH ITR & 26AS. THEY SAID I AM NOT SHOWING OTHER SOURCE OF INCOME ASPER 26AS STATMENT. BUT I AM SHOWING INCOME FORM BUSINESS WITH MORE 8% PROFIT FOR TRANSACTION VALUE.PLEASE GUIDE ME MY RETURN IS WRONG OR CHANGE TO ITR FORM

WITH REGARDS,

SANKARADHAYALAN

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10 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (179829 Points)
Replied 14 May 2018

ITR 4 is not for commission income !!!

Revise it with ITR1 or ITR 2 as applicable and declare the income under head IFOS.

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Sankaradhayalan (Accountant) (25 Points)
Replied 14 May 2018

Sir, If Itr-1or2 in IFOS column I will enter transaction value or profit value. because I spent around 75% amount to staffs salary balance only profit. I will enter transaction value (11 Laks) than I have liable to pay tax.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (179829 Points)
Replied 14 May 2018

In that case file ITR 3 and prepare P&L acc with balance sheet.

1 Like

Ashish Khillan (Gaining knowledge) (1039 Points)
Replied 14 May 2018

Dhirajlal sir, if employee received commission u/s 194h from his employer then is this also added in salary or other source?

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (179829 Points)
Replied 14 May 2018

Any incentives of any nature, received from employer are added to salary....... but when TDS u/s 194H is deducted on commission amount, advisable to declare under IFOS.

2 Like

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Sankaradhayalan (Accountant) (25 Points)
Replied 17 May 2018

Sir,

P& L (LOSS) - IFOS = NET INCOME IS RIGHT

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (179829 Points)
Replied 17 May 2018

Dear,

Gross receipts - expenditures (as per P& L accts) = Net profit........

But this rule applies in case of Business income.........

While declaring the IFOS, net income is declared in ITR1 or ITR 2.

1 Like

Deepak Sharma (Article Assistant) (24 Points)
Replied 20 July 2018

Dear sir,
same e proceeding adjustment u/s 143(1)(a) I also receive for commission income now what will we do..
if you submit response against this please suggest

Ashish Khillan (Gaining knowledge) (1039 Points)
Replied 21 July 2018

Dhirajlal Sir, 80000 commission is received from employer under 194H ...then it can be under head business and profession?

Saifullah Khalid (Autodidact/Curious ) (633 Points)
Replied 21 July 2018

Originally posted by : Ashish Khillan
	Dhirajlal Sir, 80000 commission is received from employer under 194H ...then it can be under head business and profession?

An employee earns salary from his employer so for the employee the Primary Source/classifaction of earning is Salary not the commission , Commission is his secondary source of earning..and any secondary/miscellaneous source of income will always fall under the head of " Income from other source(s) (IFOS)" .