COMMISSION AND BROKERAGE INCOME OPT FOR PRESUMPTIVE TAXATION TDS DEDUCT U/S 194H

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This discussion clarifies whether income from commission or brokerage can be declared under presumptive taxation. It explains that while Section 44AD isn't applicable, individuals may still opt for presumptive taxation under 'No account case' in ITR 3 if certain conditions are met, especially concerning turnover limits. The conversation also touches upon a specific scenario involving incorrect TDS deduction under Section 194H instead of 194A and advises on the appropriate ITR form.

raghavendra b

raghavendra b (Querist)
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26 May 2024 DEAR SIR,

TDS DEDUCTED U/S 194H CAN WE OPT FOR PRESUMPTIVE TAXATION DECLARED 8% OF PROFIT BOOKS OF NOT MAINTAINED CASES OR TO BE FILED ITR 3 AS BUSINESS INCOME TURNOVER BELOW EXCEEDS RS. 10 LAKHS BOOKS OF MAINTAINED U/S 44AA.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 May 2024 Not eligible to declare the commission income u/s. 44AD IT act.
Books of account may not be maintained if conditions u/s. 44AA(2)(i) is satisfied.
The word Rs. '10 lakhs' is replaces with Rs. '25 lakhs'.....

raghavendra b

raghavendra b (Querist)
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26 May 2024 THANK YOU SIR,

IF THE PERSON DOING COMMISSION OR BROKERAGE BUSINESS CAN NOT OPT FOR PRESUMPTIVE TAXATION IF TOTAL INCOME EXCEEDS 150000/- PREVIOUS YEAR OR BUSINESS RECEIPTS EXCEEDS RS. 10 LAKH PREVIOUS YEAR. THEY SHOULD MAINTAIN BOOKS OF ACCOUNT AS PER RULE 6F.
BECAUSE OF SIR, IN THE POST OFFICE A RETIRED SALARY EMPLOYEE DEPOSITED HIS RETIRED AMOUNT IN SENIOUR CITIZEN BENEFICIARY SCHEME BUT WHILE THEY DEDUCTING TDS U/S 194H INSTEAD OF U/S 194A. SO WRONGLY SELECTED BUSINESS HEAD WHILE DEDUCTING THE TDS. TDS AMOUNT DEDUCTED DEPOSITED U/S 194H IN THE FORM 26AS SHOWING TDS DEDUCTED U/S 194H BUSINESS RECEIPTS RS 130500/-. IN THIS SITUATION SHOULD WE FILE ITR 1 OR ITR 3.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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26 May 2024 The limits have changed to Rs. 2.50L & 25 lakhs. As such he can declare income under 'No account case' in ITR 3.

raghavendra b

raghavendra b (Querist)
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28 May 2024 THANK YOU SIR FOR YOUR REPLIES

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 May 2024 You are welcome..

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