Commission paid to doctors amount claim allowed

956 views 6 replies
it assessess maintained a pharmacy Stores sales of medicines turnover rs:180 lacs yearly and commission paid to doctors rs:2 lacs.
question:
assessess commission paid to doctors amount business expenses claim allowed or disallowed in it act (sec 37 provision in it act)
Replies (6)
Commission to Doctors is Not an allowable expense.
You may claim under consultancy fees if supporting documents are available.

Referral fees or commission may be claimed if it is in the ordinary of business unless it is illegal
Yes You can claim it's as expenses in actual nature as Commission and deduct TDS as Commission under sec 194H.
Max. doctors do not show.

Yes, the commission paid to doctors is a business expense that can be claimed as a deduction under Section 37 of the Income Tax Act. The commission paid to doctors is considered to be an expense incurred for the purpose of earning income from the pharmacy business. As such, it is allowable as a deduction under Section 37 of the Income Tax Act. It is important to note that the commission paid to doctors is subject to tax deduction at source (TDS) at the rate of 10%. The assessee is responsible for deducting TDS and depositing it with the Income Tax Department.

Business expenses incurred for the purpose of earning income are generally allowed as deductions under Section 37 of the Income Tax Act in India. However, the allowability of specific expenses, including the commission paid to doctors, is subject to certain conditions.

Here are some key points:

  1. Section 37 of the Income Tax Act:

    • Section 37 allows for the deduction of any expenditure (not being expenditure of the nature described in Sections 30 to 36) laid out or expended wholly and exclusively for the purpose of the business or profession.
  2. Commission to Doctors:

    • If the commission paid to doctors is incurred wholly and exclusively for the purpose of the pharmacy business, it may be considered a legitimate business expense.

      For further more detailed information on this topic visit: Pharma Distributors in Delhi - 2023 [Complete Details]

      To read more such trending content, visit Swipe Blogs.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 30 June 2026
Article Assistant or Paid Assistant

VIKAS VERMA & CO

New Delhi

Others

View Details
Company
ARTICLESHIP 30 June 2026
Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
25 June 2026
AUDIT MANAGER

JDAS & ASSOCIATES

New Delhi

CA

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
ARTICLESHIP 28 June 2026
Article Assistant

Sharma Chetan And Company

Gurgaon

CA Inter

View Details