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Commission income

ammy raheja (studying) (99 Points)

27 September 2016

If a individual person receives commission income from a company...then this income is taxable in hands of person under which head of income?

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14 Replies

CA Tanvi Sheth (Consultant) (232 Points)
Replied 27 September 2016

If a person is invovled into agency business, then under Business head and if not then under IFOS

1 Like

saurabh kumar (Tax Consultant) (348 Points)
Replied 27 September 2016

depends upon nature of comission may be income from business/other sources.

Kajal Jain (Freelancer-Chartered Accountant) (551 Points)
Replied 27 September 2016

if the person is a commission agent..thn income from business and profession or else income from other sources

CA shanky pahoja (accountant) (615 Points)
Replied 27 September 2016

It totaly depends on nature of commision if the person is an employee it can also be salary income.

if person is involved in agency business than it will chargeble under head P/G/B/P

iF NOT INVOLVED IN AGENCY OR NIETHER AN EMPLOYEE THAN IT WILL BE CHARGEBLE UNDER HEAD I/F/O/S

2 Like

Ramanuj (Accountant.) (834 Points)
Replied 28 September 2016

agree with above

FCA surbhi jain (FCA) (897 Points)
Replied 28 September 2016

It totally depends on nature of commission. If he is a commision agent then ,it will be taxable under PGBP.

Else, it will be taxable under income from other sources.

nagarjuna (ca) (2 Points)
Replied 27 June 2017

which ITR form should filed for PGBP in case of insurance commission ITR 4 OR 3 FOR A.Y.17-18

Aryan Rai Bhardwaj (Practising CA) (22 Points)
Replied 17 February 2018

If person is Employed in a company and commission amount is not part of his salary as can be seen from Form 16

Siddharth Goel (Chartered Accountant) (3026 Points)
Replied 29 June 2018

Hi,

Treatment of commission income depends on the nature of the source.

It will be treated as PGBP income if the commission is received as a part of conducting any business on a regular basis and where the major source of income of the assessee is from such commission income.

It will be treated as Income from Other Sources if the commission received is not chargeable to tax under the other heads of income viz. "Salary", "House property", "Business or Profession" and "Capital Gains".

It will be treated as Income under head Salary if the commission income is based on the turnover of the company as a fixed percentage and is included in the employement contract as well.

1 Like

Siddharth Goel (Chartered Accountant) (3026 Points)
Replied 29 June 2018

Originally posted by : nagarjuna
	which ITR form should filed for PGBP in case of insurance commission ITR 4 OR 3 FOR A.Y.17-18

Those who carry on business or profession of Income from commission or brokerage or an agency business cannot file ITR-4S. For income as an insurance agent – one has to file ITR4.

jaspreet singh (Accounts executive ) (54 Points)
Replied 24 July 2018

i received major source of income from business and received only 30000 rs from comission on which tds is deducted under sec 194d which ITR should i file