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Income

Ramesh Chandra Tiwari (Manager) (36 Points)

03 October 2012

One of my known person is doing commission based export jobs. She has opened Proprietorship firm to get the commission payment.

Please let me know on what basis she should pay income tax and which ITR to be filed? What kind of exemptions and benefits she can get under income tax rules?

Regards,

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2 Replies

VIJAYKUMAR (CHARTERED ACCOUNTANT) (203 Points)
Replied 03 October 2012

He should file his return in ITR 4.

Giridhar S Karandikar (Team Lead) (7543 Points)
Replied 09 October 2012

Her income from commission would be considered as business income. So all the expenditure incurred by her in connections wiht her business receipts would be deductible from her income for calculating the tax liability. Also if her total commission income during the F.Y. exceeds Rs 1crore then she would be liable for tax audit and will ahve to maintain the requried books of accounts & get them audited from a CA before filing her return of income.

In adition to the expendituer incurred for business, she would also be eligible for teh deductions under Chapter VI-A i.e. deduction u/s 80C, 80D, 80G etc...