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Diamond Assortment Charges taxability

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Akshat Varaiya

158 Points Posted on 15 July 2023

I am having Diamond Assortment Charges Income, it will be taxable under which head of income?
TDS is deducted u s 194C

Replies (2)

Quick Summary

Diamond assortment charges, such as sorting or grading for clients, are generally considered business income taxable under the Profits and Gains of Business or Profession (PGBP) head. This is often confirmed by TDS deductions under Section 194C, indicating a contract for services. You may be eligible for the presumptive taxation scheme under Section 44AD, allowing you to file ITR-4 if your total income is up to Rs 50 lakh, or ITR-3 if you maintain books of accounts. Remember to claim your TDS credit from 26AS.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121546 Points Posted on 15 July 2023

As business income u/h. PGBP.

File ITR 3 or 4.

Aashok Kumar Sharma

Finance/Compliance Consultant

77903 Points Posted on 07 November 2026

Business income:

• Diamond assortment (sorting or grading for clients) is a job-work or service activity, so it's business income (PGBP). TDS under 194C confirms it's treated as a contract.

• Presumptive option: Sec 44AD (6% digital / 8% cash) is available, since it's not a specified profession. File ITR-4 if total income is up to Rs 50 lakh. Otherwise ITR-3 with books.

• GST: job work on diamonds carries a concessional rate under the job-work entries of Notf 11/2017-CT(R). Confirm the current entry and rate for your activity. Registration is required above Rs 20 lakh.

• Claim the 194C TDS from 26AS.