19 October 2016
Mr. X is a Commission Agent, earns commission on sale of Textile products, Receives commission from seller after Closing of Financial Year at fix rate of commission.
He incurrs certain expenses to operate his commission business. eg. Rs. 100,000 in Fy 2015-16. Total Receipt from Commission business Rs.500,000. TDS Deducted from payer Rs.50,000.
How will his income be taxed under Income Tax Act?
19 October 2016
His Total Income will be Rs. 4,00,000/- taxed under the head Income from Business or Profession. On the tax liability, the credit for TDS of Rs. 50,000/- will be allowed.
19 October 2016
Deduct the expenses incurred in earning the commission from commission income. Balance amount is taxable income. File return and claim refund.
19 October 2016
If he is doing business of sale and purchase of goods and commission is earned in this business only. can he file return on presumtive basis??
CAclubindia
