11 October 2014
Sir, is a resident individual.car give on contract basis to trvels.that car is drive he and expenses spent him. gross receipts as per 26AS 260000 (after tds U/s 194c) that amount may be shown under the head other sources or not.can claim deduction u/s 57(iii)
27 July 2025
Got it! Here’s a clear breakdown for you:
### Case 1: Resident Individual giving car on contract basis to travels
* **Income Head:** This income should be shown under **“Profits and gains of business or profession”** (i.e., **business income**), **not under other sources**. * **Reason:** Since the car is given on contract basis (likely as a business activity), it counts as business income. * **Deduction u/s 57(iii):** No deduction under section 57(iii) (which applies to income under the head "other sources") is applicable here because income is under business head.
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### Case 2: Partner of a firm receiving interest on capital
* Interest paid to a partner on his capital by the firm **is taxable in the hands of the partner**. * This interest is **added to his total income under the head 'Income from Business/Profession'** or **'Income from Other Sources'** depending on the nature of the firm and interest. * Usually, interest on capital paid to partners is taxable under **“Income from Business or Profession”** if the partner is carrying on business through the firm.
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If you want, I can help you with sample entries or how to show this in ITR. Would that help?
CAclubindia
