Mr. X is a Commission Agent, earns commission on sale of Textile products, Receives commission from seller after Closing of Financial Year at fix rate of commission.
He incurrs certain expenses to operate his commission business. eg. Rs. 100,000 in Fy 2015-16. Total Receipt from Commission business Rs.500,000. TDS Deducted from payer Rs.50,000.
How will his income be taxed under Income Tax Act?
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Taxation of Income From Commission Business/Profession
Replies (5)
Gross income 5 lakhs minus business expenses 1 lakh gives him a net income of 4 laks. Check whether he has anu orher income including bank sb a/ c interest. Upto 2.5 lakhs, no tax. Consider his savings in specified u/ s 80 C such as LIC etc., if any, deduct savings upto 1.5 lak.
For His net income of 4 laks: tax liability is Rs 13,000/- after considering rebate of 2000. Out of Rs 50,000 TDS he can claim refund of 37,000/-
whether he required to maintain his books of accounts and records??
This being commission income he is required to maintain books of accounts. Sec 44 AD is NOT applicable
What if he doing business of sale And purchase of goods
and receives commission also
can he file return on presumtive basis
and receives commission also
can he file return on presumtive basis
Hi,
For purchase and sale transaction assessee can file return on presumptive basis,but for commission income it is directly added in presumptive profit derived on sale transaction.
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