ITR form for brokage and commission

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 brokerage 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 brokerage is going to be substantial, every year and year after year, then such income shall fall under income from business and Profession and ITR3/4 shall be suitable.

ITR 3 is suitable for brokage and commission.

Hi,

You can use ITR-3 for brokerage and commission to show the same as business income. In that case, you can claim the business expenses incurred to earn such brokerage or commission income.

Further, you can not use ITR-4 for brokerage and commission income to claim 44AD Presumptive taxation benefit.

Further, you can show commission income as income from other sources in ITR1 / ITR2.

Thanks

Mohammed Khalandar

Chartered Accountant

7899157078

Yes... I agreed to Mr Vijay Prakash.

@ Mr R Vadivel.,

ITR 3 is applicable for the income earned through Brokerage and Commission.

As In case of commission /brokerage, you are not eligible under sec 44ad so you should not file ITR 4

If it's other income means any other income also not business then you go with ITR1

In case purely Business of brokerage/commission go with ITR3 it's most suitable