Taxation of Income from commission and Brokerage Business

Save Share

This query is : Resolved

Pramod Bhansali (Querist)

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?

Anand

Anand (Expert)

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.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

19 October 2016 Deduct the expenses incurred in earning the commission from commission income. Balance amount is taxable income. File return and claim refund.

Pramod Bhansali

Pramod Bhansali (Querist)

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??

Anand

Anand (Expert)

19 October 2016 No I don't think he can.
My fellow experts may correct me if I am wrong

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now