Incentive income

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MOTILAL PUROHIT (Querist)
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04 May 2017 My client is working with an Inssurance Co and he gets salary + incentives. can we show the incentive amount as bussiness income and can we deduted expenses like depreciation, petrol exp etc in P & L a/c . Employer had issued form 16 as only salary & tds deduted on all amount .
thanks

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 May 2017 You can't do that. Incentive will be considered as part of salary income in case of salaried person.

Sandeep Dharar

Sandeep Dharar (Expert)
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04 May 2017 If he is getting incentive as fixed compensation then u need to treat it as salary. But if received as commission then that is his business income. And if business income is there then u can claim deduction of expenses like depreciation, petrol exp. etc (if not getting reimbursement of it and if asset is in the name of the employee).

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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04 May 2017 Employer has considered it as salary and deducted TDS so different treatment can't be given.

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