Tds
This query is : Resolved
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)
Nikhil Kaushik
(Expert)
11 October 2014
under business income.................
Nikhil Kaushik
(Expert)
11 October 2014
under business income.................
04 December 2014
sir,he is resident individual,partner of firm,he aviled interst on capital that amount should added or not in his total income
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.
---
### 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.
---
If you want, I can help you with sample entries or how to show this in ITR. Would that help?
### 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.
---
### 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.
---
If you want, I can help you with sample entries or how to show this in ITR. Would that help?
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