Which itr form to use?

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Yathish N (Querist)
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31 July 2013 Hi,

I am working for a private firm and also working as LIC agent. Which ITR form I can use to file my IT returns. I am having below given figures from LIC agency:

Total commission: 21582/-
TDS deducted: 3520/-

1. Can I use ITR-1 and show the commission amount as "Income from other source"?
2. How much out of commission amount, I can claim as expenses?
Should I show, Gross receipts - Expeneses = Gross profits?
3. Which form to be used for IT returns?
4. If it is ITR-4 which all the sections to be filled?

Please help me file my IT returns.

Thanks in advance
Yathish N

CA UMESH DULAL

CA UMESH DULAL (Expert)
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31 July 2013 you can file ITR 1 showing commission income as income from other source

while calculating income from other source you can deduct all the expenses incurred by you while earning the commission

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Ganeshbabu K

Ganeshbabu K (Expert)
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31 July 2013 INCOME FROM COMMISSION IS BUSINESS INCOME AND THEREFORE CHARGEABLE TO TAX UNDER THE HEAD INCOME FROM BUSINESS AND PROFESSION.

as income from commission not exceeds 120000 books of accounts not mandatory

so file return by showing commission income in ITR4 in Sheet PL in the serial number 51 no accounts case

due date to file return if tax audit not applicable for A.Y.13-14 is 05.08.2013

Thanks & regards
Ganesh babu k

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Yathish N

Yathish N (Querist)
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01 August 2013 Hi All,

Thanks for all the support. I am left with one more clarification. Since my main income is from salary only (almost 95%), one of my friend suggested to fill up ITR4 for LIC agency commission as below:

PART PL:
Line 1:Sales/ Gross receipts of business or profession (Net of returns and refunds and duty or tax, if any) = 21582
Line 15:a: Salaries and wages = 15000 for expenses

Is this correct? Or should I be just filling up Section 51 of ITR-4 as below

Gross receipts 21582
Gross profit
Expenses 15000
Net profit

What should I put in the Gross profit if this is the way to do? Please help me.

Ganeshbabu K

Ganeshbabu K (Expert)
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01 August 2013 1)yes, as i said above you can fill details in serial no. 51 no accounts maintained case.it will be enough as your commission income is not exceeds 1,20,000

2)gross profit is same as gross receipt you keep

So it should be

Gross receipts 21582
Gross profit 21582
Expences 15000
Net profit 6582

Ganeshbabu K

Ganeshbabu K (Expert)
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01 August 2013 But dear Yatish,

your friend stand on claiming 15000 expences is not correct

you cannot claim more than 1/3rd of commission received.

so Expenses eligible would be restricted to 7,194 only

So you should provide as below

Gross profit 21582
Gross profit 21582
Expences 7194
Net profit 14382

Thanks & regards
Ganesh babu k

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CA UMESH DULAL

CA UMESH DULAL (Expert)
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01 August 2013 If you have maintened the books of accounts, then fill relevent rows of p&L a/c.

othewise fill section 51 as detailed by you.

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Yathish N

Yathish N (Querist)
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01 August 2013 Thanks a lot Ganesh & Umesh for quicker replies to my queries.

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