Business income Under 44AD and Insurance Commission Income

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If you run a job work business with a turnover under 10 lakhs and have a small income from insurance commissions, you need to file your taxes correctly. While you might want to declare job work income under Section 44AD and insurance commission as 'income from other sources', this isn't permissible. Both incomes should be reported under business income, meaning you'll likely need to file ITR-3.

Kelvin Bhuva

Kelvin Bhuva (Querist)

09 July 2020 if a person as individual engaged in Business of Jobwork which has a turnover of 10 lakhs and Income From that buisness is nearly 3 lakh nearly and income from Insurance Commission is 15K and person want to show his business under 44Ad and Insurance income as income from other source?

Which ITR Should that person will have to file and why?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

09 July 2020 File ITR 3 showing job work income under 44AD and commission income under business income.

Kelvin Bhuva

Kelvin Bhuva (Querist)

09 July 2020 Ok sir you mean that person will have to show jobwork income under 44ad and insurance commission income as regular business but main source of income of that person is not from insurance commission income can we show that commission as income from other sources?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

10 July 2020 No it can't be shown as other income.

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