clarrification on head of income tax

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 June 2011 My friend is selling products of one ltd company and he received commission / incentive for the sale of each product . His bank account effected due to this work , he got cheque from customer and deposit in his account and issue cheque to company against the sale made by him . Commission or incentive trf by company to his bank account directly after deducting TDS
So please clarify the head of income tax . Is it income from business and profession or it is income from other sources
Is the answer differ if he got cheque on the name of company and directly deposit in his account and receive commission or incentive directly in his bank account

CA Sumat Singhal

CA Sumat Singhal (Expert)

08 June 2011 I think in both cases income will be covered under head of other source..

Amit Bohra

Amit Bohra (Expert)

12 June 2011 No, In first case, person is getting the chq. in his name and then he makes payment to ITC then he is getting the commission/incentive form ITC. It's a more business activity therefore income received a commission/incentive will come under business & profession head and answer will remain same in second query b'cos again person is invovled in business activity and getting directly commission from ITC. So appropriate head will be business and profession.