ITR For Real Estate Broker

Section  44AD  of the income Tax act 1961   is not applicable  for Commission & Brokerage  .  

 My client income from real estate for Rs.650000/- per year and tds deduction  is 10400/-    which form suitable for filing of income tax return  advise me 

For a real estate broker filing AY 2026-27 returns, the ITR form depends on how you are treating the income:

ITR-3 (most common for real estate brokers):
- If you maintain books of accounts and report actual income and expenses
- Income is under Business or Profession head
- You can claim actual deductions: office rent, advertising, vehicle expenses, depreciation, phone
- Mandatory if turnover exceeds Rs 1 crore (which triggers audit under Section 44AB)

ITR-4 with Section 44ADA (for eligible professionals):
- Section 44ADA allows professionals to declare 50% of gross receipts as income (presumptive scheme)
- HOWEVER: Real estate brokers are NOT specifically listed as professionals in Section 44AA (unlike CAs, lawyers, architects, engineers, doctors)
- Most tax practitioners take the view that real estate brokerage is NOT eligible for Section 44ADA
- Some ITATs have allowed it where the nature of services is professional in character - but this is an unsettled position

Practical guidance: If in doubt, use ITR-3 with actual books. The risk of a notice if you claim 44ADA for brokerage income (where it may not apply) outweighs the compliance convenience.

This [income tax guide for real estate agents and brokers AY 2026-27](https://taxgarden.in/blog/income-tax-for-real-estate-agents-brokers-india-ay-2026-27) covers ITR form selection, deductions, TDS under Section 393, and GST threshold for brokers.

On the later ₹6.5 lakh query: brokerage is excluded from Sec 44AD by Sec 44AD(6) and 44ADA doesn't cover brokers, so file ITR-3 on actual income; books are compulsory under Sec 44AA(2) only if income exceeds ₹2.5 lakh or receipts exceed ₹25 lakh, and tax audit applies only above ₹1 crore receipts.