Liable uS 44AA

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A stationary shop owner declared profits under Section 44AD but also received commission income. The tax department has requested a balance sheet and P&L. The advice is to report the commission as service receipts or other income under ITR-3, not to club it with the 44AD profit, and to include the relevant balance sheet figures.

harshit darji

harshit darji (Querist)

13 May 2021 I have stationary shop and filed 13,40,000 profit and 4,00,000 Profit us 44AD.but i also i also received commission from insurance agency rs 55,000 AND show under special business(commission/agency without books of account).and entered only financial particular.anow department defect my return and advice to file balance sheet and p&l.
now i have balance sheet and PL of stationary shop.
can i club 55,000 to profit and loss account.?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 May 2021 No, you can't club it.
Show it as service receipts.

NAVEESH DHAR

NAVEESH DHAR (Expert)

14 May 2021 yes you can show this income in itr 3 form in p&l under the head other income (commission) and another balance sheet figures also required to be shown.

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