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Expense deduction from commission income.

Mahender Singh (STUDENT) (141 Points)

18 September 2021

can a post office agent who earn commission income
can deduct amount payed to a person appointed for collection as expense from total commision?? . if he pay him on monthly basis
can this monthly payment be deducted from commission income???

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 18 September 2021

As such all the expenses incurred to earn the income are deductible. Check TDS liability also.

In this case, when the payments are made on regularly basis, the same may be considered under Salary head.

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CA. Sourav Sarkar (Chartered Accountant ) (24578 Points)
Replied 19 September 2021

Agree with above comment

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Mahender Singh (STUDENT) (141 Points)
Replied 19 September 2021

Due to tds he filling itr. as I know their is no column in ITR to mention such expense . so should mention the income in itr after deducting this payment from commission earned and keeping the record of the monthly payments or their is any column to mention this expense???

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 19 September 2021

Post agent kind divert his income to other person. It his liability to pay tax over the total commission income, less any expenditure, which he gets. As he pays some regular amount to his assistant, it can be deducted in proper head, be it salary or commission. or fees; whatever you name it. The same heads are available in ITR under 'Schedule P&L'

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160327 Points)
Replied 19 September 2021

Post agent can't divert his income to other person. It his liability to pay tax over the total commission income, less any expenditure, which he gets. As he pays some regular amount to his assistant, it can be deducted in proper head, be it salary or commission. or fees; whatever you name it.

All these heads are available in ITR under 'Schedule P&L'

1 Like