Urgent -- please answer with case reference

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2011 HELLO ALL,

LAST YEAR I BOOKED A FLAT THROUGH A BROKER FOR RS 50 LAC. AS PER THE AGREEMENT WITH BROKER AND ME, BROKER WILL SHARE HIS COMMISSION ( WHICH BROKER WILL RECEIVE FROM BUILDER FOR HELPING IN BOOKING A FLAT ) LATER.

THIS YEAR BROKER PAID MY SHARE OF COMMISSION ie Rs 40000 AFTER DEDUCTING TDS U/S 194H.

NOW MY QUERY IS ...WHAT IS THE STATUS OF THAT RS 40000 AMOUNT IN MY HAND.
WHETHER IT SHOULD BE ADJUSTED WITH THE COST OF FLAT AND TDS TO BE CLAIMED BY ME.
OR
THAT RS 40000 IS MY INCOME.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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26 July 2011 The commission is not given by the builder which reduces the cost of the flat. It is given by the broker so it is a taxable income in your hand and to be shown under the head Income from Other sources. Adjust the TDS against the Tax liability.

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