Sales commission included in form16

Commission paid in this case will be treated as sales incentive and would form the part of salary. The employer should deduct TDS on gross salary (fixed salary + commssion) after giving all allowances benefit, if any. If employer do so, Form 16 issued by it would show the actual TDS deduction. Thus no other form is needed to claim TDS on commission separately. If employer deducts TDS on fixed salary only, ask him to provide you Form 16A also.

Yes, Tax has been deducted on the Whole amount i.e. Salary and Sales commission, which is reflected in Form 16.

Hence as per your reply, the benefit of deductions under Business and Profession (B&P) cannot be claimed for the Sales commission received.

 

Usually Commission or Sales Commission is assessed under B&P, is there any way to assesses the Sales Commission under B&P?

If connection between two persons is as an employer and an employee, any commission paid to employee will be treated as salary. Commission can be treated as business income only if the connection between two persons is as mutual contract.

Also, in some cases commission is treated as other income when a person gets commission not on regular basis i.e. when getting commission on sales or supply is not his professional/business activity.

thanks for the clarification.