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Commission treatment

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jasmeet singh

220 Points Posted on 21 May 2021

Respected professionals
please tell me how the treatment will be in the following circumstances.
1. I received money in my saving account for services(courier) rendered by some one ,I paid after deducting my commission to that person . under which head it is taxable other sources or pgbp
2 .or on what amount tax is to be paid, difference or full amount credited in my account

Replies (4)

Quick Summary

This discussion clarifies the tax treatment of commission received for services rendered. It explains that if this isn't a regular business activity, the commission income should be declared under 'Income from Other Sources'. Only the net commission amount (received minus paid) is taxable, not the full amount credited to your account. The applicability of Section 44AD for commission agents is also addressed.

Sivaramaraju G

Learner

2398 Points Posted on 21 May 2021

As it may not be your regular activity so you can declare the commission income under PGBP and the amount of commission (credit amount - debit amount(that you have paid))alone is required to show not the total amount credit to your account.

jasmeet singh

220 Points Posted on 21 May 2021

But commission can't be declared under 44ad

Sivaramaraju G

Learner

2398 Points Posted on 21 May 2021

Sorry my mistake, you should shown under income from other sources if it is not your regular activity. I type wrongly PGBP instead other sources.

yeah you are correct we can't apply 44AD for commission agent .