Requirement to maintain account books for brokerages receipts

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If you've earned over Rs. 1 lakh in brokerage or commission, Section 44AD of the Income Tax Act is not applicable. You are generally required to maintain account books for this income. This commission or brokerage income should be disclosed in your income tax returns, potentially under 'Income from other sources' if using ITR 4.

Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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23 February 2022 Sir, during previous year, I had received brokerages/commission exceeding Rs. 1.00 lac (against various sale of lands sale as attorney).Whether I am liable to maintain account books or may I show the same U/S.44AD ?

praveen

praveen (Expert)
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23 February 2022 Section 44AD is not applicable for commission / brokerage earned. You can maintain books of accounts for the commission earned and disclose the same in the income tax returns.

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Mahabir Prasad Agarwal

Mahabir Prasad Agarwal (Querist)
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23 February 2022 May I show this commission/brokerage income in ITR 4 under the head "Income from other sources" ?

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