Itr-4 filed for commission income(194h)

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Sankaradhayalan

Accountant

25 Points Joined April 2014

I AM DOING PAYMENT COLLECTION AGENCING RECEIVED THE COMMISSION FOR THEIR PAYMENTS THEY DEDUCT TDS @ 5% UNDER SECTION 194H.I FILED ITR-4 FOR THE AY 2017-18.NOW I RECEIVED NOTICE 143(1)A MISMATCH ITR & 26AS. THEY SAID I AM NOT SHOWING OTHER SOURCE OF INCOME ASPER 26AS STATMENT. BUT I AM SHOWING INCOME FORM BUSINESS WITH MORE 8% PROFIT FOR TRANSACTION VALUE.PLEASE GUIDE ME MY RETURN IS WRONG OR CHANGE TO ITR FORM

WITH REGARDS,

SANKARADHAYALAN

Attached File : 1272486 20180514181218 income.jpg downloaded: 156 times

Replies (10)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209719 Points Joined July 2016

ITR 4 is not for commission income !!!

Revise it with ITR1 or ITR 2 as applicable and declare the income under head IFOS.

Sankaradhayalan

Accountant

25 Points Joined April 2014

Sir, If Itr-1or2 in IFOS column I will enter transaction value or profit value. because I spent around 75% amount to staffs salary balance only profit. I will enter transaction value (11 Laks) than I have liable to pay tax.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209719 Points Joined July 2016

In that case file ITR 3 and prepare P&L acc with balance sheet.

Ashish Khillan

Gaining knowledge

1039 Points Joined October 2015

Dhirajlal sir, if employee received commission u/s 194h from his employer then is this also added in salary or other source?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209719 Points Joined July 2016

Any incentives of any nature, received from employer are added to salary....... but when TDS u/s 194H is deducted on commission amount, advisable to declare under IFOS.

Sankaradhayalan

Accountant

25 Points Joined April 2014

Sir,

P& L (LOSS) - IFOS = NET INCOME IS RIGHT

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

209719 Points Joined July 2016

Dear,

Gross receipts - expenditures (as per P& L accts) = Net profit........

But this rule applies in case of Business income.........

While declaring the IFOS, net income is declared in ITR1 or ITR 2.

Deepak Sharma

Article Assistant

24 Points Joined February 2018

Dear sir,
same e proceeding adjustment u/s 143(1)(a) I also receive for commission income now what will we do..
if you submit response against this please suggest

Ashish Khillan

Gaining knowledge

1039 Points Joined October 2015

Dhirajlal Sir, 80000 commission is received from employer under 194H ...then it can be under head business and profession?

Saifullah Khalid

Autodidact/Curious

638 Points Joined October 2014

Originally posted by : Ashish Khillan
	Dhirajlal Sir, 80000 commission is received from employer under 194H ...then it can be under head business and profession?

An employee earns salary from his employer so for the employee the Primary Source/classifaction of earning is Salary not the commission , Commission is his secondary source of earning..and any secondary/miscellaneous source of income will always fall under the head of " Income from other source(s) (IFOS)" .