Claiming of expense on commission income

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If you're a marketing executive receiving commission alongside your salary, you can claim reasonable expenses related to earning that income. Your tax advisor suggests claiming 50% of your commission as expenses, but it's crucial to maintain proper documentation and books of accounts to support these claims. Additionally, if your commission income exceeds £20,000, you will likely be liable for GST registration.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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20 July 2022 I am a marketing exicutive in an entity. Along with my salary i have received some amount as commission. While filing income tax return, my tax return preparer advice me to claim 50% expense on these commission income. Is there any problem on claiming expense on commission income

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 July 2022 No problem claim reasonable expenses on your travel and other expenses.

SHYAM KRISHNAN K

SHYAM KRISHNAN K (Querist)
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20 July 2022 Is this require any documental proof for supporting the same. During the year i have received an amount of Rs. 21 lakh and he advice me to claim an expense of 50% of the same. And in this case am i liable of GST registration

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 July 2022 Yes, you are liable for GST registration as the receipts exceed 20 lacs.
To claim the expenses you need to maintain books of accounts and documentary proof required.

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