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Which ITR is required for commission/brokerage income

Akshy (student) (67 Points)

01 January 2020

I am a salaried individual earning income from commission/brokerage also. My commission income is much higher than the salary income. Also TDS is deducted on commission part and not on salary as it is below exemption limit. Which ITR should I file ? Can I declare the income under Income from Other Sources in ITR 2 as I don't want to claim any deductions ?

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6 Replies

Kapadia Pravin (17259 Points)
Replied 01 January 2020

ITR 3
you can't declare that income under IFOS

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Akshy (student) (67 Points)
Replied 02 January 2020

What documents need to maintained for the same as I will be receiving the amount in my savings account.

In ITR 3 the income do I need to enter the complete Balance Sheet details or just the No Accounts Case part ?

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 21 July 2020

Selection on income tax return form ITR is decided by the following two factors -

How much is the share of income under a particular head, if there are more than one head of income and
How one want to treat that income.

In your case, if the income from brokerage is one time and/or casual in nature (some time it may be there and some time it may not be there) then it needs to be considered as income from other sources and ITR1/2 shall be most suitable.

However, if the income from brokerage is going to be substantial, every year and year after year, then such income shall fall under income from business and Profession and ITR3/4 shall be suitable.

CA Payal Gupta (Chartered Accountant) (154 Points)
Replied 21 July 2020

Dear Sagar,

I agree with your views but I have doubt in your last sentence, ITR-4 - Income Tax returns for the presumptive scheme is not applicable in case of an assessee earned income from commission or brokerage.

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 21 July 2020

@ CA Payal ji

thanks for correction
I agree with you, ITR 4 can't be used as presumptive scheme is not applicable in case of an assessee earned income from commission or brokerage

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akshita rathod (2 Points)
Replied 31 July 2022

Dear Sagar

I have a query if a person is having a commission income once in a year of say Example 2,00,000 and is earning salary and also shows Business under presumptive basis than which ITR IS suitable for such individual.