Applicability of Books of Account for Commission Income (Sections 194D & 194H)
This query is : Open
26 July 2026
Sir,
An assessee earning income in the nature of commission (on which tax is deducted under section 194D or section 194H) is generally required to maintain books of account and file the Income-tax Return accordingly.
However, in practice, returns are also being filed without preparing books of account in certain cases, particularly where the assessee also has income from salary, bank interest (including fixed deposit interest), or other non-business sources.
Kindly clarify:
Is there any provision under the Income-tax Act, 1961, or the Income-tax Rules that permits filing the return without maintaining books of account where the assessee has commission income along with salary and interest income?
Is there any monetary threshold of commission income up to which books of account are not required to be maintained?
If yes, kindly specify the relevant section, rule, CBDT circular, or notification governing the same.
An assessee earning income in the nature of commission (on which tax is deducted under section 194D or section 194H) is generally required to maintain books of account and file the Income-tax Return accordingly.
However, in practice, returns are also being filed without preparing books of account in certain cases, particularly where the assessee also has income from salary, bank interest (including fixed deposit interest), or other non-business sources.
Kindly clarify:
Is there any provision under the Income-tax Act, 1961, or the Income-tax Rules that permits filing the return without maintaining books of account where the assessee has commission income along with salary and interest income?
Is there any monetary threshold of commission income up to which books of account are not required to be maintained?
If yes, kindly specify the relevant section, rule, CBDT circular, or notification governing the same.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Deemed Capital Gain
- Exiting partner in partnership firm in gst portal
- Type of Capital Gain
- F & O PROFIT REPORTING FOR AY 2026-27
- ASMT-10 received from A O
- Difference in GSTR3B system generated which is correct and actual Payment it asks
- GST ON TRAVELLING BILLS
- VALUATION OF PRIVATE LIMITED COMPANY SHARES
- TAX AUDIT QUESTION
- LIABILITY ADJUSTMENT
- Applicability of Books of Account for Commission Income (Sections 194D & 194H)
- Gst on travel by air for business purposes
- Loss of interest in PF transfer from EPFO to Trust
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- TDS offline utility
- TDS on rent received on hardship compensation being rent on redevelopment of building
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
