Income for which tds u/s 194h deducted

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tony varghese (Querist)
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18 July 2014 hi all...

please advice me;

one of my friend has an income for which tds u/s 194H has been deducted@ 10%.. so it being a commission income, can we have the option of using any deduction for expenses incurred on earning such commission income(its a normal commission).

Additional info : this friend of mine has only salary income other than this commission.

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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18 July 2014 yes, earning commission is business activity, u can claim business exp to earn this income. but u have to prepare p& l account and bal sheet, as comm income is not covered u/s 44 AD

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tony varghese

tony varghese (Querist)
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19 July 2014 this is not a regular commission income...it just happened once... so no chance to treat it as a business activity... so as per me it will b coming under the head ''income from other sources''... so my question is still..can we have expense as deduction from this income and to what extend.

thanks again

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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21 July 2014 dear sir,
according to me , if u r so keen to treat it as income from other sources, then also u can claim the expenditure wholly and exclusively incurred to eran this income ( sec 57 (iii)
but sir, to ur clarification if we read sec 56 (1) , income which do not fall in any other head , then it should be fall under income from other sources.
sec 56 (2) to 56 (viii) specifically provides the income which r to be charged under income from other source.

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tony varghese

tony varghese (Querist)
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22 July 2014 ca sunil sir,

thanks alot... you really helped.. thanks again

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