Business Income or Other Income Conundrum

Hi

 

I got a one time referral bonus of 250/- on which 13/- TDS was deducted from the broking firm that gave me the referral amount in the trading account ledger I have with them. TDS was deducted under section 194H, it is coming in TIAlS/AIS as Business Receipts.

 

Is it okay to declare this 250 in income from other sources when I file my returns.

 

Do I have to show it under Business Income where regular accounts of books are not maintained?

 

Could you please help 

 

I am ready to provide more information if needed 

Replies (4)
Quick Summary
This discussion addresses whether a one-off referral bonus, with TDS deducted under Section 194H and appearing as 'Business Receipts' in tax reports, should be declared as business income or income from other sources. The consensus is that for small amounts, it can be safely declared under 'Income from Other Sources', provided the 'Schedule TDS2' is updated to reflect this. Section 194H relates to commission, making it distinct from contractor payments under Section 194C.

If that is the only income where TDS deducted under sec 194H, you can declare it under 'Other income'.

But change equivalant source in ;Schedule TDS2' from 'BP' to 'OS.'

Yes certainly

Sec 194 h is commission related

Sec 194 C os contractor related.

Your income is too small so you can safely declare under income from other sources 

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