Tds under 194h which form to fill

This query is : Resolved

Sameer Sharma (Querist)
Follow

22 July 2015 MY Wife operates work from home and deals in various Air tickets. The Company which issues Air Ticket deduct TDS on every Ticket and Part commission Under Head 194H, Last Year my wife was employed but this year she is working Independently so we can confuse which form to fill, Also do she need to maintain and sale record or Audit for her business.

She do Earn small profit by selling those tickets too so how to fill suitable form like profit from business or commission from business

Total Commission Parted to Her is INR 1,73,000 and TDS deducted is INR 17,300.

Sameer Sharma

Sameer Sharma (Querist)
Follow

03 August 2015 Any Suggestion Highly appreciated

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
Follow

02 August 2025 Got it — here’s a straightforward breakdown for your wife’s TDS and filing situation under **Section 194H** (commission):

---

### 1. **Which ITR form to file?**

* Since your wife is earning commission from air ticket sales and also making a small profit from the business, she is running a **business or profession**.
* **ITR-3** is the appropriate form for individuals carrying on business or profession.
* If income is only from commission and small profit without maintaining detailed books, and total income is under ₹50 lakh, ITR-3 fits well.
* If she opts for presumptive taxation (Section 44AD) and does not keep detailed books, ITR-4 can also be considered.

---

### 2. **How to show income?**

* Report the commission income and related expenses under **“Profits and gains of business or profession”** in the ITR.
* The commission received is business income, so she should declare gross commission income and deduct allowable expenses to arrive at net profit.
* The TDS deducted by the company will be reflected in Form 26AS and can be claimed as a tax credit.

---

### 3. **Is audit required?**

* For a small business with turnover below ₹1 crore (₹50 lakh if profession under presumptive scheme), audit is **not mandatory**.
* Since commission income is ₹1.73 lakh (well below threshold), no audit is required.

---

### 4. **Record maintenance**

* Even if audit is not mandatory, maintaining simple records of sales, commission received, and expenses is recommended.
* This helps in accurate income reporting and in case of any scrutiny.

---

### Summary

| Aspect | Suggestion |
| -------------------- | ---------------------------------------------- |
| **ITR form** | ITR-3 (business income) or ITR-4 (presumptive) |
| **Income to report** | Commission + Profit under Business/Profession |
| **TDS deducted** | Claim credit from Form 26AS |
| **Audit** | Not required (income below audit limit) |
| **Record keeping** | Maintain basic books for income and expenses |

---

If you want, I can help prepare a draft summary of income or sample ITR section for commission income. Would that help?

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now