Become a Govt. Certified GST Practitioner in just 65 hrs. Subscribe Now!

Brokerage/commission received from Motilal oswal

260 views 3 replies

Ashu Mishra

35 Points Joined July 2017

This queries relates to my friend. He is a business partner in motilal oswal financial securities ltd. And he received brokerage from motilal oswal and motilal oswal deducted their tds u/s 194h.

And he has income only from brokerage and total income from brokerage is less than 2.5 lacs (approx - 2.4 lacs). So please guide me which itr form need to be fill by my friend.
(In the previous year itr1 is filled because previously my friend had income from different sources like salary and brokerage. )

Thanks
Regards
Ashutosh Mishra

Replies (3)

Sagar Patel

Tax and Business Consultant

11611 Points Joined July 2015

Selection on income tax return form ITR is decided by the following two factors -

How much is the share of income under a particular head, if there are more than one head of income and
How one want to treat that income.

In your case, if the income from brokerage is one time and/or casual in nature (some time it may be there and some time it may not be there) then it needs to be considered as income from other sources and ITR1/2 shall be most suitable.

However, if the income from brokerage is going to be substantial, every year and year after year, then such income shall fall under income from business and Profession and ITR3 shall be suitable.

In you case, ITR 3 is advisable, as reason mentioned above