Chartered Accountant
3031 Points
Joined June 2016
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.