TDS

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 June 2010 Is TDS on commision deductible of aggregate of commission for all employees exceeds Rs.2500 for a FY or Commssion for each & every employee exceeds Rs.2500?

Does commssion includes sales commission?

Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 June 2010 If commission if being paid to employees then the same will form part of salary only as per Section 17.

So TDS deductible u/s 192 on salary and not u/s 194H i. e. commission.

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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28 June 2010 Commission paid to employee is part of salary. It is the same treatment as salary.

Salaries.

15. The following income shall be chargeable to income-tax under the head "Salaries"—

(a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;

(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him;

(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.

1[Explanation 1].—For the removal of doubts, it is hereby declared that where any salary paid in advance is included in the total income of any person for any previous year it shall not be included again in the total income of the person when the salary becomes due.

2[Explanation 2.—Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as "salary" for the purposes of this section.]

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Aditya Maheshwari

Aditya Maheshwari (Expert)
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28 June 2010 Though u intend to say the same thing salary is defined under Section 17.

17. 85For the purposes of sections 15 and 16 and of this section,—

(1) “salary”86 includes86—

(i) wages;

(ii) any annuity or pension;

(iii) any gratuity86;

(iv) any fees86, commissions, perquisites or profits in lieu of or in addition to any salary or wages;

(v) any advance of salary;

87[(va) any payment received by an employee in respect of any period of leave not availed of by him;]

(vi) the annual accretion to the balance at the credit of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under rule 6 of Part A of the Fourth Schedule;

(vii) the aggregate of all sums that are comprised in the transferred balance as referred to in sub-rule (2) of rule 11 of Part A of the Fourth Schedule of an employee participating in a recognised provident fund, to the extent to which it is chargeable to tax under sub-rule (4) thereof; and

88[(viii) the contribution made by the Central Government 89[or any other employer] in the previous year, to the account of an employee under a pension scheme referred to in section 80CCD;]