Itr for a layman commission agent.

ITR 213 views 4 replies

MD FATIN MOHD. HUSAIN NIZAMI

Accounts Assistant

60 Points Joined February 2012

INCOME FOR WORKING AS AN AGENT FOR AN NRI.

Dear All,

One iof my clients has been working for his NRI brother in law on commission basis and has been recieving his proceeds in foreign currency in his bank account. Now, he has never mantained any sort of accounting for this purpose but has all the details of receipts and payments in his bank statement and passbook. He wants to pay all his dues to the tax department and file returns till date and continue doing so in the future.

My query is, do I need to make his accounting records first before making the tax calculations and filing his returns thereafter. Moreover, under which head shall I disclose his income- Salary or Business??...He has also taken a loan of Rs. 1 lacs for house repairs and maintenance, will that amount be allowed as a deduction- If yes, what are the limits for it?

Please friends help me finalizing his returns at the earliest date for FY 2015-16 as well as 2016-17.

Attached File : 748976 20170516120257 it calculation fy 2015 16.xlsx downloaded: 77 times

Replies (4)

Vaibhav Agarwal

19 Points Joined November 2015

You can file for this agent ITR 4 with proper informations.

for more Please Contact: vaibhavagg095 @ gmail.com

Studentsca

CA Practice

3577 Points Joined September 2012

1. The head of income would be Business & Profession and not Salary. This is because for income to be considered as salary income there needs to employer - employee relationship. You have clearly mentioned that he is working for his brother on commission basis and not salary basis and hence show it as business income. 2. Whether you need to maintain accounts or not depends upon section 44AA of the Income Tax Act. 3. The amount taken for repairs will be available for deduction US 24(b) upto Rs. 30,000/- if it is self occupied.