Tds on commission paid to top regular employee

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ravi (Querist)

30 September 2010 Dear all,

Please solve my following query on the urgent basis:

" How tax on commission paid top regular employees be treated?

We can addg it in salary and paying TDS based on the tax slab of the employee.

Should we consider commisison separate and pay profesional tax on it at 10.3%."

Aditya Maheshwari

Aditya Maheshwari (Expert)

30 September 2010 Section 17 states as under:

17. 32For the purposes of sections 15 and 16 and of this section,—

(1) “salary” 33 includes33—

(i) wages;

(ii) any annuity or pension;

(iii) any gratuity33;

(iv) any fees33, commissions, perquisites or profits in lieu of or in addition to any salary or wages;

So it is salary only.

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ravi

ravi (Querist)

30 September 2010 then tds will be deducted according to the tax slab.....thanks

Aditya Maheshwari

Aditya Maheshwari (Expert)

30 September 2010 Yes.

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