04 May 2017
My client is working with an Inssurance Co and he gets salary + incentives. can we show the incentive amount as bussiness income and can we deduted expenses like depreciation, petrol exp etc in P & L a/c . Employer had issued form 16 as only salary & tds deduted on all amount . thanks
04 May 2017
If he is getting incentive as fixed compensation then u need to treat it as salary. But if received as commission then that is his business income. And if business income is there then u can claim deduction of expenses like depreciation, petrol exp. etc (if not getting reimbursement of it and if asset is in the name of the employee).
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