Hi,

I am a salaried professional booked a flat through broker. Broker paid me commision and deducted commision under sec 194H(commision & brokerage). I can find this info in Form 26AS.

Earlier I always used to file ITR-1 and use form 16 to fill the tax form. I am not sure which ITR form to be used this time as it has some borkerage TDS as well.

I know many salaried people have booked their flat via broker here and must be in same scenario as me.

What the best possible way to handle this?

Experts please advise.
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  • As per my understanding, if Broker gets 5% of commision (100 Rs) from builder and agrees to pass 4% (80) to buyer than in this case:

    Broker will get 5% from the company after TDS deduction it will be (100 -100*10%) = 90 Rs.

    He will deduct the TDS he has already paid to company when he is paying you and give you 72 only.

    I feel in this case he will not submit this 8 Rs. as TDS against your PAN No so the same would not reflect in your form 26AS.
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  • Originally Posted by nkg_8
    As per my understanding, if Broker gets 5% of commision (100 Rs) from builder and agrees to pass 4% (80) to buyer than in this case:

    Broker will get 5% from the company after TDS deduction it will be (100 -100*10%) = 90 Rs.

    He will deduct the TDS he has already paid to company when he is paying you and give you 72 only.

    I feel in this case he will not submit this 8 Rs. as TDS against your PAN No so the same would not reflect in your form 26AS.


    Thanks for you replay. I will try to explain again. Lets not bring builder into picture.

    Broker has given me a cheque of Rs 90 after deducting TDS Rs. 10. The same TDS is shown in Form 26AS u/s 194H. Where as TDS from Salary is shown u/s 192

    Now which ITR form to be used in this case, where my main income is salary.
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  • I am not tax expert but, I feel this will be treated like same as you redeem mutual fund within three years and company will deduct a TDS on that. or a PF withdraw in less than 3 years.

    That will be considered as your income then and you can add that in other income in ITR1 only.

    You can mention that TDS as well in your return and deducter's TAN number.

    Originally Posted by Kaps_real1
    Thanks for you replay. I will try to explain again. Lets not bring builder into picture.

    Broker has given me a cheque of Rs 90 after deducting TDS Rs. 10. The same TDS is shown in Form 26AS u/s 194H. Where as TDS from Salary is shown u/s 192

    Now which ITR form to be used in this case, where my main income is salary.
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  • Thanks for your help NKG. Even I think in the same manner as quoting it under other incomes.

    Still, If any one with more expertise in Tax matters or who had similar experience. Please share.

    I am sure many would have received their credit notes refund with TDS deducted.
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  • Believe me, less than 5% of salaried people are considering all these. Very few agencies submit the TDS against your PAN number. If they do then Income tax data updation problem.

    Even if it is reflected in your 26AS then very rare people view that before filing their returns.
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  • Kaps,

    Income from Commission is usually charged under the head "Profits or Gains from Business or Profession", however, you are not in the business of earning commissions from Builders/Brokers/etc; as such in your case the amount of money received from the Broker will be charged to Tax under the head "Income from Other Sources".

    There are five heads of Income under which the income earned by a Tax Payer is charged to Tax, these are:
    Income from Salary / Pension;
    Income from House Property;
    Income from Capital Gains;
    Income from Other Sources
    Profits or Gains from Business or Profession

    The return form that you can use will depend on the number of Heads under which your income will be taxable. You can use SAHAJ (ITR-1) if you fulfill the following conditions:

    Income from Salary
    Income from one House Property
    Income from other Sources (excluding winnings from lotteries or races)

    You can download the form/ at the following link.

    https://incometaxindiaefiling.gov.in/portal/downloads.do

    Detailed instructions along with forms are also available at the following link. Please read the instructions carefully to figure out which form will be applicable to you.

    NEW RETURN FORMS FOR ASSESSMENT YEAR 2011-12

    Please consult an expert (CA/Tax Lawyer) if you are in any doubt.
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  • Thanks King_jsr. I now have better understanding of this matter.

    I will be filing ITR-1 and use option 'Income from Other Sources'.

    Thanks for all your help guys. I will try and let you all know the outcome.
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  • I faced the same question this year and also claimed refund of TDS filed under 194H on form 26AS in my name. Hoping for the bounty as refund coming from IT dept.

    Did you also do that?
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  • Well, you need to add whole Rs 100 (or X) to your salary, Now let your salary was Rs Y from your company, then your total salary will be X + Y, now if you come in 10% slab, you need to pay 0.3X more(3% is cess and 10% you have paid), but if you come in 20% slab you need to pay 10.6X more, Broker will provide you form 16A, you need to club your income from your company(Using form 16) and form 16A.

    Regards,
    Dheeraj
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  • Originally Posted by Kaps_real1
    Thanks King_jsr. I now have better understanding of this matter.

    I will be filing ITR-1 and use option 'Income from Other Sources'.

    Thanks for all your help guys. I will try and let you all know the outcome.


    Hello Kapil, Did you fill your return with ITR-1 or ITR-4? I am on the same boat. Broker has deducted TDS under 194 H and it is coming in my 26AS.

    I am also confused

    whether i should fill ITR-1 as i am salaried employee and show this as income from other source
    or
    I should fill ITR-4 but is very complicated as i will need to submit Balance sheet etc...

    What to do?
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  • Originally Posted by vkgupta4
    Hello Kapil, Did you fill your return with ITR-1 or ITR-4? I am on the same boat. Broker has deducted TDS under 194 H and it is coming in my 26AS.

    I am also confused

    whether i should fill ITR-1 as i am salaried employee and show this as income from other source
    or
    I should fill ITR-4 but is very complicated as i will need to submit Balance sheet etc...

    What to do?


    I used ITR-1 and it worked fine for me.
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  • Originally Posted by Kaps_real1
    Hi,

    I am a salaried professional booked a flat through broker. Broker paid me commision and deducted commision under sec 194H(commision & brokerage). I can find this info in Form 26AS.

    Earlier I always used to file ITR-1 and use form 16 to fill the tax form. I am not sure which ITR form to be used this time as it has some borkerage TDS as well.

    I know many salaried people have booked their flat via broker here and must be in same scenario as me.

    What the best possible way to handle this?

    Experts please advise.


    Sidetracking for a moment but your broker must be one of the best in Noida. Most do not honor credit notes and even if they do, they pay in cash after deduction of tax and pocket it. Please share the name of the broker so that we can bow to him/them.
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  • Rightly said, i am still waitin to get credit note enchashed from Net Ambit.
    after 14 months they are saying that they have still not recieved their commision from builder. though builder has collected now almost 50% from me.... i doubt if i will get anything from Net Ambit.


    Originally Posted by DeadlyNausea
    Sidetracking for a moment but your broker must be one of the best in Noida. Most do not honor credit notes and even if they do, they pay in cash after deduction of tax and pocket it. Please share the name of the broker so that we can bow to him/them.
    CommentQuote