Where to show the Income of a Commission transporter in ITR

ITR Filing 675 views 3 replies

Vaishali Deshwal

27 Points Posted on 28 July 2022

Please resolve my query
A person is a commission agent who books lorries on behalf of other transporters and receives payment. TDS is deducted u/s 194C and reflected in his 26AS. He makes payment from his account to the other party and keeps only the commission for the service rendered.

How he will be treated?
Whether he is allowed to opt u/s 44AE or he should go u/s 44AD ?

Now here comes an issue with section 44AE as this section shall be opted only in case transporter owned the truck.
But here in my case the person doesn't owned any truck. Also, on portal, while declaring Income u/s 44AE, there is this drop down option to select whether the truck is owned/ leased/ hired. So if I select hired truck form that option and declare the said income u/s 44AE, would it be correct or not?

Or should this Income be declared under Other Source?
Please guide me....

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

211715 Points Posted on 28 July 2022

The commission income can't be declared u/s. 44AE or even sec. 44AD of the act.

You need to file ITR 3 with normal assessment, i.e books maintained....

Or if the total receipts are less than 25 lakhs & net income below 2.50 L, then under no account case.

Vaishali Deshwal

27 Points Posted on 29 July 2022

Sir actually the person owned 2 trucks during preceding FY but he sells both the trucks in preceding FY itself. Because of which he opts for 44AE in that FY.
But for the current FY he does not owned any trucks therefore can not opt for 44AE and only earn commission income on truck bookings of 3rd party. Therefore as you advised to opt for ITR 3 this year.
So here I want to ask whether there arise any problem in future years if he again purchase some trucks later and again want to opt for 44AE.
Is there any restrictions in switching again from ITR 3 to ITR 4.
Please advise...