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?
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/-
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