Is this income is treated as Business Income or Profession Income?

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This discussion clarifies whether brokerage income received as a franchise of Aditya Birla Money Ltd. should be classified as business income or professional income. While TDS was deducted under Section 194J for 'Fee for Technical Services', the consensus leans towards treating it as business income due to its commission nature, making it ineligible for Section 44AD.

rajesh

rajesh (Querist)
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09 August 2021 Sir/Madam

I am the Franchise of Aditya Birla Money Ltd. for Shares, Securities etc., broking purpose.

I was received Brokerage from Aditya Birla Money Ltd. for broking of Shares, securities purpose.

1) In Invoice Aditya Birla Money Ltd. Clearly stated amount paid to me is "Brokerage" and GST SAC is 997152.

2) Aditya Birla Money Ltd. is deduct TDS @ 2% u/s 194J under " Fee for Technical Services"

my doubt is this income is consider under a) Business Income or b) Professional Income.

Please Reply.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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09 August 2021 Since 194J TDS deducted consider it as professional income.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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21 October 2021 As TDS deducted for technical services at @ 2% (now sec.194Ja) it will be treated as business income. Being commission nature, cannot be offered u/s. 44AD too.

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