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Income tax return

25 July 2020

Help me with this, A individual person having income from property dealer like commission from sale, purchase, renovation etc. but that person is not registered any where and also not having any business premises. Earning is 450000 approx from this, Could you plz guide me about income tax return which ITR return I have to file ??? and under what head income shown?

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12 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 25 July 2020

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 comission 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 comission is going to be substantial, every year and year after year, then such income shall fall under income from business and Profession and ITR3 shall be suitable.

1 Like

Kanchan Saxena (50 Points)
Replied 26 July 2020

If this income shown in other source then can it will help for get Bank loan in future or for credit cards??

1 Like

c.bakshi (practising company secretary) (3221 Points)
Replied 26 July 2020

I suggest you to file ITR 4 in this case. acceptable for bank loan nd credit card

1 Like

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 July 2020

ITR-4 - Income Tax returns for the presumptive scheme is not applicable in case of an assessee earned income from commission or brokerage

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annu Goyal (1102 Points)
Replied 26 July 2020

ITR 3 is suitable for property dealer, as dealing with properties and charging commission on it it's there business, you should go with ITR3

this return can also help in bank loan as well as I'm credit card also, there is no condition that you should have income from other sources only, they consider one head income as well as amount of income

1 Like

HAROON MAFAT (48 Points)
Replied 26 July 2020

ITR 3 new form issue?

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 July 2020

No, Form ITR 3 for A.Y 2020-21 still not notified /released.
Only ITR 1/2/4 is available for filing for A.Y 2020-21

1 Like

Kanchan Saxena (50 Points)
Replied 26 July 2020

If ITR 3 is not available ?Can I show income from other source this yr so that I file return on ITR 2 now ?and next yr will change to ITR-3 and will show on PGBP income if business get registered ?Is it possible to change heads of income or ITR forms?

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Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 26 July 2020

The due date for the income tax return for the AY 2020-21 has now been extended to November 30, 2020
You can wait for form ITR 3 for A.Y 2020-21 to come as due date to file return is 30/11/2020

If you are filing Income tax return of that individual for first time and you want to file return For last year i.e A.Y 2019-20 also than due date for that is 31 st July 2020 and ITR is also available for A Y 2019-20 on income tax website.