Mobile phone recharge distributor earned commission income

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This query is : Resolved

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A mobile phone recharge distributor is seeking guidance on whether their commission income qualifies for presumptive taxation under Section 44AD. They previously filed their Income Tax Return (ITR) for AY 2019-20 under Section 44AD with a turnover below Rs. 6 lakh and profit around Rs. 2.30 lakh. The user has been advised that commission income is not eligible for 44AD and should file ITR 3, claiming expenses. They are concerned about the implications of having previously filed under 44AD, especially since their refund has already been processed. They have been reassured that a revised return can still be filed.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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05 October 2020 commission earned by mobile phone recharge distributor, income can be consider US 44AD ? last year AY 2019-20 ITR filled return under 44AD
turnover below Rs. 6 lac profit around Rs 2.30 lac this year
please guide

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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05 October 2020 44AD not applicable for commission income. File ITR 3 claim expenses.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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06 October 2020 thanks Sir for prompt reply
but what about last year ITR which was filled US 44AD?
now, is it breach of Section 44AD????
if yes, please advise

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 October 2020 Yes, file revised return before the end of this month.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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06 October 2020 sir
if that ITR already proceed and refund paid? we can revised?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 October 2020 Yes, you can revise it now not a problem.

VIKAS KUMAR SHARMA

VIKAS KUMAR SHARMA (Querist)
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06 October 2020 thank you very much! SIR