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Commission Income

 


Commission Income Filing in India

Accurate Return Filing for Agents, Distributors, and Commission-Based Professionals

Commission Income • TDS Management • GST Applicability • Expert ITR Filing Support


What is Commission Income?

Commission income refers to earnings received by individuals or businesses for facilitating a transaction or service on behalf of another party. It is commonly earned by:

  • Real Estate Agents

  • Insurance Agents

  • Stock Brokers

  • MLM Distributors

  • Freelance Consultants ‍

  • Marketing Affiliates

This income is fully taxable under the “Profits and Gains from Business or Profession” or sometimes under “Income from Other Sources”, depending on the nature of the transaction.


Key Characteristics of Commission Income

FeatureDescription
SourcePaid by a company, client, or platform
FrequencyMonthly, quarterly, or on-performance basis
Mode of PaymentCheque, bank transfer, UPI, or digital wallets
TDS DeductedUsually 5% or 10% u/s 194H
Business or Profession HeadIf income is regular/recurring
GST ApplicabilityIf commission income exceeds 20L (10L in special states)

Which ITR Should You File?

ProfileApplicable ITR Form
Individual with only commission incomeITR-3
Opting for presumptive taxation (u/s 44ADA)ITR-4
Also earning salary or rental incomeITR-3 or ITR-4 based on nature

Note: Commission income is not eligible under Section 44AD (presumptive scheme for businesses).


How Is Commission Income Taxed?

TypeTax Treatment
Commission as main incomeTaxable as Business Income under ITR-3/4
Commission as part-timeIf occasional, may be taxed under Other Sources
TDS deducted by payerReflected in Form 26AS – needs reconciliation
GST chargedRequired if income exceeds limit and not exempt

Deductions Allowed

  • Business-related expenses

  • Internet/phone bills

  • Travel and conveyance

  • Office rent or home office use

  • Staff salaries or freelance payments

  • Depreciation on laptop, bike, etc.

  • GST paid on inputs (if registered)


Documents Needed for Filing

  • PAN & Aadhaar

  • Commission statements or invoices

  • Bank statements

  • Form 26AS / AIS / TIS

  • Expense bills (if claiming deductions)

  • GST returns (if applicable)

  • TDS certificates (Form 16A)


Important Deadlines

  • ITR Filing (Non-Audit Cases): 31st July

  • ITR Filing (Audit Required): 31st October

  • Advance Tax: If annual tax liability > 10,000

  • GST Returns (if applicable): Monthly/Quarterly


‍ Why Choose SSA TAX for Commission Income Filing?

FeatureBenefit
Accurate ITR MappingITR-3 or ITR-4 based on your situation
TDS ReconciliationMatch with Form 26AS
Expense Deduction PlanningLegally reduce tax liability
GST Filing SupportIf required for commission agents
Presumptive Scheme GuidanceFor eligible professionals
Year-Round Tax AdvisoryAdvance tax, investment proofs, etc.
100% Online, Hassle-FreeNo visits, all digital

Common Use Cases

  • Real estate brokers filing income with 5% TDS

  • LIC agents earning commission + bonus

  • Freelancers earning affiliate marketing commission

  • MLM distributors earning monthly income

  • Consultants paid by foreign or Indian clients


Testimonials

“As an LIC agent, I was confused about GST and TDS. SSA TAX made the filing so simple and helped me claim my TDS refund too.”
– Rajeev Sharma, Lucknow

“My digital commissions from affiliate marketing were getting blocked because I didn’t file ITR properly. SSA TAX sorted it all professionally.”
– Priya Mehta, Mumbai


File Your Commission Income ITR with Confidence

Whether you’re a full-time agent or a part-time consultant, don’t miss out on refunds or risk a tax notice. Let SSA TAX handle your ITR, TDS, and GST needs.

Call/WhatsApp: +91-9773346539/38/34
Email: info@ssatax.in
Website: www.ssatax.in

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FAQs – Commission Income Filing

Q1. Is TDS applicable on commission income?
Yes, usually 5% or 10% under Section 194H.

Q2. Can I file ITR-1 for commission income?
No, you need to file ITR-3 or ITR-4 depending on your case.

Q3. Is GST applicable on commission?
If your total commission exceeds 20L (10L in special states), GST applies.

Q4. Can I claim business expenses?
Yes, if filing under regular provisions (ITR-3), you can claim all genuine business-related expenses.

Q5. What if I don’t file my commission income?
Non-filing may result in tax notices, penalties, or interest under various sections.


Ready to File? Let's Get Started

Your commission income needs smart filing to avoid penalties and save tax.
SSA TAX offers affordable and accurate ITR services for agents, consultants, and freelancers.

Book your FREE consultation today.