Sage-Tips

Which ITR form is applicable for 194H?

ITR-4
Q- Which ITR should be filed for income received from commission 194H? Ans- ITR-4 is required to be filed if the commission income is the main source of your income.

Where should I show commission or brokerage income in ITR?

Income from commission is taxable under the head Income from Business or Profession or you can also show it in Income from other source. Accordingly, you will have to file ITR 4.

Which ITR is filed for commission income?

Insurance agents earning commission are required to file their returns using ITR – 3. It is essential to note that an entity whose income is by way of commission or brokerage cannot adopt the presumptive taxation scheme of Section 44AD.

Can I file ITR 4 if I have commission income?

This is because those who carry on business or profession of Income from commission or brokerage or an agency business cannot file ITR-4S.

What is Section 194H?

Section 194H is for income tax deducted on any income by way of commission or brokerage, by any person responsible for paying to a resident. Individuals and Hindu Undivided Family who were covered under section 44AB are also required to deduct TDS.

Under what circumstances TDS u/s 194H is not deductible?

5) Under what circumstances TDS u/s 194H is not deductible? No deduction shall be made under this section in a case where the amount or the aggregate amounts of such income to be credited or paid during the financial year does not exceed INR 15,000.

What is the TDS on brokerage?

The rate of TDS on commission or brokerage is ten percent, which includes five percent from the fiscal 2016-2017. There is no additional charge or education cess imposed on payment to resident. If PAN has not been delivered by the payee, then TDS to be deducted at the rate of 20 percent.

Can I file ITR 1 for commission agent?

“In such case, if an individual is earning only from the commission and his total income does not exceed Rs 50 Lakh can use ITR-1 to file the return.

Is brokerage income taxable?

What is Section 194H. Section 194H is for income tax deducted on any income by way of commission or brokerage, by any person responsible for paying to a resident. Individuals and Hindu Undivided Family who were covered under section 44AB are also required to deduct TDS.

Who can not file ITR 4?

An individual having income from salary, house property or other sources above Rs 50 lakh cannot use this form. An individual who is either a director in a company and has invested in unlisted equity shares cannot use this form.

What is the threshold limit for 194H?

₹ 15,000
Under Section 194H, the threshold limit for TDS deduction for commission/brokerage is ₹ 15,000 .

Should I file ITR 4 or itr4/4 for brokerage income?

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 ITR4/4s shall be suitable. If brokerage income is your major source of income then go for ITR 4.

How to file ITR for commission agents?

A. As you are a Commission agent, your income falls under Business Income, but you are not eligible for sec. 44AD. So, you need to file ITR 3 with Balance Sheet and Profit & Loss A/c. These are some important points to file ITR for Commission Agents.

How to report income from house property on ITR?

You have to file Form ITR-1 which allows you to report salary income, income from house property as well as income from other sources. If you have received any other kind of income as mentioned in points 1, 3 or 4 above, you can either show it as income from other sources or business income.

Who is not eligible to file ITR-3?

An Individual or HUF who is earning income as a partner of a partnership firm which is engaged in a business/profession is not eligible to file ITR-3. In this case, he can file ITR 2. When Should ITR 3 be Filed? ITR-3 form is filed when the assessee earns income which falls into the below-mentioned category: