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Which itr should be use

sandeep (Accountant) (111 Points)

29 March 2016

Please guide me which ITR should i use. I have salary income as well as commission income from ABC Company. and Abc has deducted TDS on commission .

I came to know that the commission that i have received is consider as salary income but TDS has deducted on commission so what should i do.

Thank you

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11 Replies

Vinay somani (CA, CS) (Assistant Manager-Accounts) (549 Points)
Replied 29 March 2016

fill form ITR 1 and shown income under salary and IOS head

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sandeep (Accountant) (111 Points)
Replied 29 March 2016

Thank you sir for your reply. but someone has also told me that ITR-4 can be used . Now i am little bit confused. What is the difference in both ITR.

ANAND (CA) (133 Points)
Replied 29 March 2016

ITR 4 is filing the returns in balance sheet form which is not in your case

You may file under ITR 2 as you have commission income as ITR 1 is only for salary income and for any other income with salary you need to file ITR 2

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 29 March 2016

if you offer the commission income to the tune of 100 % without claiming any deduction of expense then ITR 2 would be filed ( ITR 1 is purely for salary income and does not include income from other source )

if you want to claim some expenses from commission and offer part of it for tax purpose, then you have to file ITR 4,

in both the cases TDS would get space for adjustment / refund

sandeep (Accountant) (111 Points)
Replied 29 March 2016

Yes. i want claim some expenses from commission and want get refund of tax (TDS) which was deducted by the employer .So i opt for ITR-4

Thanks for your valuable suggestion Sharmaji, anandji and Vinayji.

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Sandeep Sankaran (Chartered Accountant) (128 Points)
Replied 29 March 2016

If ABC Company is your employer, then commission is taxable under the head salaries. If not, then next question is whether the commission was received as just a one time affair or is it your business apart from the employment. If it is business, then ITR 4 is to filled otherwise ITR 1 will do.

Animesh Chowdhury (Article) (22 Points)
Replied 30 March 2016

I would like to go with Sandeep and would like to suggest you to file ITR 2 and if its is your business then file ITR 4.

Mihir (Wealth Manager) (5293 Points)
Replied 30 March 2016

You may file ITR2. ITR4 is for business/profession. In your case, you are full-time employed for a salary, and commission is a second source of income.