Income Tax Return for Salary with commission income

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This discussion addresses how to file an income tax return for an individual earning both a salary and commission from a car dealership, as well as direct commission from the car manufacturer. It explores whether ITR-1 is suitable, considering the nature of commission income and TDS deductions. The consensus leans towards filing ITR-3 to accurately report commission income, especially when TDS has been deducted under Section 194H.

PRATIK PADHIYAR

PRATIK PADHIYAR (Querist)
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22 September 2020 My Client is working as a sales man with a Car Dealer. He receives Salary income from dealer and commission on sale of car from dealer. He also receives commission on sale of car from the car manufacturer. Which return he should file? Can he file ITR-1?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 September 2020 Consider both commission received as sales incentive under salary head and file ITR 1, if TDS on salary deducted on all payments.

PRATIK PADHIYAR

PRATIK PADHIYAR (Querist)
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22 September 2020 Dear Sir,

Thanks for your reply... For commission Income, TDS is deducted under the head commission 194H, Still we can show as incentive?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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22 September 2020 In such a case file ITR 3 showing commission income as per TDS deduction.

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