Which ITR is required for commission/brokerage income

ITR 3
you can't declare that income under IFOS

What documents need to maintained for the same as I will be receiving the amount in my savings account.

In ITR 3 the income do I need to enter the complete Balance Sheet details or just the No Accounts Case part ?

 

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.

Dear Sagar,

I agree with your views but I have doubt in your last sentence, ITR-4 - Income Tax returns for the presumptive scheme is not applicable in case of an assessee earned income from commission or brokerage.  

 

@ CA Payal ji

thanks for correction
I agree with you, ITR 4 can't be used as presumptive scheme is not applicable in case of an assessee earned income from commission or brokerage

Dear Sagar 

I have a query if a person is having a commission income once in a year of say Example 2,00,000 and is earning salary and also shows Business under presumptive basis than which ITR IS suitable for such individual.