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I am commission agent and my gross receipt is 1831325 and tds deduct 91566. how can claim to refund

26 June 2019

I AM COMMISSION AGENT AND MY GROSS RECEIPT IS 1831325 AND TDS DEDUCT 91566. HOW CAN CLAIM TO REFUND. FOR COMMISSION AGENT HOW MUCH EXPENSES IS ALLOW IN PROFIT AND LOSS ACCOUNT.

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5 Replies

Suresh Thiyagarajan (Student) (3986 Points)
Replied 26 June 2019

1. There is no specific provision with respect to claiming of expenses with respect to commission expenses.
2. But claiming actual expenses incurred should not be a problem. Provided you have necessary bills, supporting and vouchers. All those expenses can be claimed in your profit and loss account.
3. However, if you have not maintained books presumptive taxation under sec 44AD can be opted. In that case, 8% or 6% of receipts can be taxable profit.
Please correct me if the above solution has an alternative view.

CA Salman Ansari (Salman Ansari & Assoc.) (247 Points)
Replied 27 June 2019

Hi Rohit,

There is no limit for claiming expenditure against the gross commission received provided the expenditure must be incurred to earn the income i.e. commission and not for any other / personal purpose.

Further, depending upon how much expenditure you are able to deduct with proper documentation, you will be asked to pay tax on the amount after such deduction to the extent such amount increases the TDS already deducted i.e. 91,566/-

Hence, please note that if the tax payable on your net income is more than that, you will not be eligible for refund.

As for the first question, you can apply for the refund by filing income tax return and disclosing your income as well as TDS deducted therein.

@ Suresh: I'm afraid he won't be able to opt for 44AD provision as the same is specifically prohibited for commission income.

Hope this helps. Feel free to follow up.

Ragards