Please Help: Commission Received on purchase of flat

Posted Date : 23-Jun-2011 , 10:45:48 am | Posted By Vishal Gupta

Hi Sir,
My Client has purchased a flat worth Rs. 93 lacs. broker has returned him commission of Rs. 58000 after deducting TDS @ 10% by cheque. broker has also given him TDS certificate for the deducted amount and same is showing in form 26AS too. Now I have question where I have to show that commission. as per rule it should be deducted from cost of flat. but broker has shown it as commission. please tell me what to do in this matter.

Category : Income Tax | Answers : 2 | Comments : 3 | Hits : 701

Answers

Answer By: Mrattunjay

TDS rEFUND CLAIM With TAX Authorities

Answer By: Vikash Kumar Jha

If that commission received by you from the broker in the nature of income then it will not deducted from cost of flat. Otherwise it will deducted and you can claim as a refund.

Comments

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CA VIKAS JAIN

23-Jun-2011 , 11:00:30 am

Dear Vishal, No doubt that the return of commission will reduced the cost of Flat to your client. The TDS deduction made by the broker is wrong and the RS 58000 plus amount of TDS will reduced the cost of flat. now the TDS is already deducted and same has been deposited with the govt, now that amount can be claimed as refund by your client in his return.