Doubt on brokerage income

Others 303 views 4 replies

k.kartheek

B.Com

30 Points Joined November 2012

Dear Sir/madam,

i have doubt one of my friend having brokerage income of Rs 100000/- along with that he is doing works contract business,he is having confusion that weather that brokerage amount will be possible to show in that particular business if so in what way he will show that income.is it right way to show that income under the head "INCOME FROM OTHER SOURCES", please suggest the better

Replies (4)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211454 Points Joined July 2016

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

Vineeth Ajith

Final Student

61 Points Joined June 2012

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

k.kartheek

B.Com

30 Points Joined November 2012

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

Sagar Patel

Tax and Business Consultant

11616 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 ITR3/4 shall be suitable.