TDS on Brokerage paid to Sub-broker of NSE

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  1. Dear Sir,
    I received brokerage as a sub-broker of a NSE broker. This is not under the ambit of sectlion 194 h which clearly excludes brokerag from purchase & sale of SECURITIES in stock exchanges (as is also confirmed by the definition as per section 2 (h) of Securities and Contracts (Regulations) Act 1956 . Why then my broker deducted deposited TDS @10 % and gave me Form 16A. Has the firm gone wrong here by deducting TDS ? Also, is this business income or income from Other sources? should i file ITR 1 or itr 4? i think it is business income and hence itr4. But please clarify and let me know how can i get the refund by filing itr4?

    Yours sincerely
    Last edited: Aug 5, 2016
  2. You are a sub-broker and this would be considered as Business Income and not Income from Other Sources.

    ITR 4 would be applicable in this case
  3. Thank you very much for clearing my confusion. Can you go through the question once more It's a edited one with one more question?
  4. ethanscott

    ethanscott New Member

    The business part is correct since your income is not from other sources, form 4 is correct. But even if you are a sub broker, you have an income and that income is not from other sources right?
    So do you think that is the reason why your tax is getting deducted as a sub broker?
    What are your thoughts about this?
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