Deducted 194 H

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This query is : Resolved

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This discussion explores whether commission income earned from credit card sales, with TDS deducted under Section 194H, can be declared under Section 44AD of the Income Tax Act. While some suggest it might be possible, others advise against it, recommending normal assessment or filing under ITR 3 as a 'no account' case. A key concern raised is that a profit margin below 6% could trigger queries from the CPC.

Akshay Kumar

Akshay Kumar (Querist)
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12 July 2024 This is commision on sale with with credit card ..So can I show it under 44ad as presumptive business income ..My friend uses his credit card for commission sale and in AIS it was showing credit card payment of 14 lakhs .. mostly done for credit card sale .So is that sufficient to file 44ad with showing profit of 12 percentage.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 July 2024 Any commission income cannot be declared under sec. 44AD IT act, you have to go for normal assessment.

Akshay Kumar

Akshay Kumar (Querist)
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13 July 2024 So can we file itr 3 and put it under no account case and the payment amount as gross receipts and the net profit as the commission income ..he earned only 10500 with 8lakhs sales .and tds is deducted under 194h

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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13 July 2024 Yes, but profit margin less then 6% will attract query from CPC.

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