Commission related bank bc

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This discussion addresses a business owner's query about how to file their Income Tax Return (ITR) considering their cloth shop and Bank BC (Business Correspondent) income. The user has a significant turnover from their Bank BC (₹1.10 crore) with a commission of ₹1.15 lakh, and a cloth shop turnover of ₹30 lakh. They are unsure whether to declare the commission under 'Income from Other Sources' or combine both turnovers under Section 44AD for presumptive taxation. The expert clarifies that commission income cannot be declared under presumptive assessment and must be filed under the normal assessment mode, specifically under the Profit and Gains from Business or Profession (PGBP) head, as TDS would have been deducted on it. The user is advised that an audit may be applicable.

Vicky choudhary

Vicky choudhary (Querist)
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25 August 2025 Sir mera cloth shop v hai and bank bc central bank ka hai.mera turnover csp ka 1 crore 10 lakh hai.lekin mera commission 115000hai .or clothshop ka turn over 30 lakh hai to kya mai apne itr me head of other sources me 115000 commission and brokerage dikhakar file kre ya 44 ad me dono ka turnover jodkar mention krke 8% ya 6% income dikhakar file kre and mere liye audit
applicable hoga pls suggest me

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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25 August 2025 No. You cannot add commission income under presumptive assessment. You are liable to declare business income under normal assessment mode. TDS would have been deducted under commission, so declare it under PGBP head.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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22 September 2025 Good luck..

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