section 44AD and ITR

This query is : Resolved 

15 June 2011 if my commission income is only Rs. 10,000 and TDS Rs. 1,000 has been deducted by company.now for refund purpose i have to file my return of income.what ITR form should i file whether regular ITR4 or ITR4s.in this scenario what figure will be considerd as my turnover.if my turnover is considered Rs. 10,000 then can i show all this amount (100% instead of 8% as described in 44AD) as my total income while i have no any expenses to be deducted from this gross profit/receipts,and there is no any other income at all.

15 June 2011 You may show this income as Income from other source and file ITR2.

15 June 2011 my nature of business/profession falls in code 0301 as a general commission agent.i receive commission and not interest.then how can i go for ITR2.i declare my presumptive income Rs 10,000 on the basis of my annual gross receipt of Rs 10,000. then why souldn't i file ITR4s?---pl sir, make it clear. pl ref https://www.caclubindia.com/experts/for-commission-income-which-form-i-use-itr-4-or-sugam-itr4s--672200.asp

23 July 2025 This is an important distinction โ€” letโ€™s address your situation clearly:

---

### ๐Ÿ” **Your Case Summary**

* You are a **general commission agent**
* You earned **โ‚น10,000 as commission income**
* Company **deducted โ‚น1,000 as TDS (u/s 194H most likely)**
* You want to **file return to claim refund**
* You are asking:

1. Which **ITR form** to use โ€” ITR-4S (now called ITR-4) or regular ITR-4?
2. Whether **Sec 44AD** applies to you?
3. Can you **show 100% of โ‚น10,000** as income and avoid expenses?

---

## โœ… Answers

### 1. โŒ **Section 44AD does *not* apply to commission agents**

> As per the **Explanation to Section 44AD(6)**, the presumptive scheme **does not apply** to:
>
> > โ€œa person carrying on agency business or earning income in the nature of commission or brokerage.โ€

โœ… Since your entire income is **commission**, **Section 44AD is not applicable** to you.

---

### 2. ๐Ÿงพ **Which ITR form should you use?**

* Since your income is **commission (business income)** and you are **not eligible for presumptive taxation**,
* You **must use ITR-3** (or ITR-4 in earlier years, if applicable) and **maintain books** unless you're under the exemption limits for books of accounts under Section 44AA.

โš ๏ธ **ITR-4S (Sugam)** โ€” which was meant for Section 44AD โ€” is **not allowed** for commission agents.

---

### 3. ๐Ÿ’ก **Can you show full โ‚น10,000 as income (no expenses)?**

Yes, **you can declare โ‚น10,000 as income** if you genuinely had no expenses.
However, it must be shown as **business income**, not under presumptive basis.

So, in ITR-3:

* Under **"Business Income"**, you can show:

* **Gross receipts**: โ‚น10,000
* **Expenses**: โ‚น0
* **Net profit**: โ‚น10,000
* Show **TDS of โ‚น1,000** in Schedule TDS
* You'll be eligible for **โ‚น1,000 refund** (assuming no tax payable)

---

### ๐Ÿ“ Summary

| Aspect | Your Situation |
| --------------------- | ---------------------------------------- |
| Nature of income | Commission (agency income) |
| Eligible for Sec 44AD | โŒ No โ€” Section 44AD does **not** apply |
| ITR Form | โœ… **ITR-3** (not ITR-4S/Sugam) |
| Income to show | โ‚น10,000 under Business Income |
| TDS claim | โ‚น1,000 โ€” to be shown in TDS schedule |
| Expenses | Can show โ‚น0 if you truly had no expenses |

---

Let me know if you'd like a step-by-step on filling ITR-3 in this case.


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