Commission income under Section 194JB

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This discussion addresses how to report commission income where TDS has been deducted under Section 194JB. While it can be reported under 'Income from Other Sources' as it doesn't fit the presumptive tax scheme (Section 44ADA), it's also suggested that if insurance agency is the main business, reporting it under 'Income from Business and Profession' and claiming expenses is a better approach. Filing ITR3 is recommended to avoid potential issues.

DIVYESH JAIN

DIVYESH JAIN (Querist)

28 June 2022 Dear Sir,

One of my client has earned Commission income from an Insurance company and the company has deducted TDS @ 10% under Section 194JB

My query is while filing his Income tax return under which head of Income should I consider this income. Can I take this income as Other source income since commission income does not come under Presumptive Taxation scheme under Section 44ADA.

Please help me in this matter.

Regards,
Divyesh Jain

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

28 June 2022 Your can show same under Income from Other aourcesy

DIVYESH JAIN

DIVYESH JAIN (Querist)

29 June 2022 Ok, Thanks for your reply

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

29 June 2022 Welcome..............

Dhirajlal Rambhia

Dhirajlal Rambhia

(Expert)

11 July 2022 As TDS has been deducted, it is always advisable to file ITR3, to safe guard against any defective notice.

CA PARTH SHAH

CA PARTH SHAH (Expert)

08 January 2023 If the main business is of Insurance agent, then better file for Income from Business and profession and claim relevant expenditure for the business activity.

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