Sage-Tips

Which ITR for salary and insurance commission?

ITR – 3
Insurance agents earning commission are required to file their returns using ITR – 3.

Which ITR for salary and professional income?

ITR 4 is to be filed by the individuals/HUF/ Partnership firm whose total income of AY 2020-21 includes as below: Business income under section 44AD or 44AE. Income from profession calculated under section 44ADA. Salary/pension having income up to Rs 50 lakh.

Is commission income exempt from tax?

Although a commission earner can be referred as an “agent” or “representative”, the individual is regarded as an “employee” in the Fourth Schedule of the Income Tax Act. Commission income is variable income.

Can we file ITR 4 for 194H?

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.

What type of account is commission income?

Commission Income is an income account. It is presented under income or revenues in the income statement. Commission Income is the primary revenue account of businesses that primarily make money from making sales or closing deals for third parties.

How do taxes work on commission?

A commission is considered a “supplemental wage” by the Internal Revenue Service (IRS). The IRS defines supplemental wages as wage payments to an employee outside of his or her regular wages. If you receive it outside your regular paycheck, then it becomes supplemental and your commission is taxed at a rate of 25\%.

Do I need to file ITR-4 for commission income?

Ans- ITR-4 is required to be filed if the commission income is the main source of your income. Q – How do I show a commission income under Section 194H along with a salary income?

Do I need to file ITR-4 if my income is 194j?

You have income from salary. And also you have one instance of income from 194J and it means professional income. Thus , you have income from salary and professional income. Therefore, you need to file ITR-4. (Here it is assumed that income u/s 194J is less than ₹50 Lakh)

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.

What is the difference between ItR 1 and ITR 3 and 4?

ITR-1: If you show that income under the head of other sources, you can file Form ITR-1. If you show it as business income, you can either file ITR-3 or ITR-4. ITR-4: If you don’t maintain books of accounts or note down the business expenses separately, filing ITR-4 is the most viable option.