Commission agents like CSP agents who work on behalf of banks.they provide facilities like deposit withdrawl and get commission in return.Now if they give tax on the commission earned in GST.then they will show only commission earned as total turnover in INCOME TAX.
since lakhs of money they have taken and transfered via their bank account will INCOME TAX DEPARTMENT ask them anything regarding this,will they treat all the deposited money in their account as their income.
please clearfy this to me
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Doubt in showing turnover.
Replies (1)
The Income Tax Department will not treat the entire transaction volume as your income if you can provide evidence of the agency relationship. You must maintain clear records showing that the money passing through your account is not your own, but rather funds held in trust for your principal, with only the commission portion being your taxable revenue.
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