Doubt on brokerage income

There is fine difference between regular business and occasional opportunity...

Dear Kartheek,

First of all please ascertain whether the brokerage income is earned as a part of his regular business/profession. If so, it shall be included in his Income and Expenditure A/C. It will be so in most cases.

If the income is irrelevant in his professional scenario and non recurring in nature, there is no problem in showing the same as IFOS. You got to do the needful wrt the nature of income.

 

Regards

it did not arrived from regular business, so can i show it as IFOS?

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 ITR3/4 shall be suitable.