1. What is Commission Income Tax?

Commission income tax is the tax levied on income earned through commissions in India for Assessment Year 2024-25. It's calculated as a percentage of the total commission income as per the applicable tax rates.

2. How Does the Calculator Work?

The calculator uses the simple tax formula:

Where:

• Commission Income — Total commission earned in Indian Rupees (₹)
• Tax Rate — Applicable tax percentage for AY 2024-25

Explanation: The calculation multiplies the commission income by the tax rate and divides by 100 to get the tax amount.

3. Importance of Tax Calculation

Details: Accurate tax calculation ensures proper tax compliance, helps in financial planning, and avoids penalties for underpayment of taxes.

4. Using the Calculator

Tips: Enter your total commission income in INR and the applicable tax rate percentage. The calculator will compute the tax amount you need to pay.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard tax rate for commission income?
A: The tax rate varies based on your total income slab and nature of commission. Common rates range from 5% to 30%.

Q2: Is TDS applicable on commission income?
A: Yes, TDS under Section 194H may be applicable at 5% if commission exceeds ₹15,000 in a year.

Q3: Can I claim expenses against commission income?
A: Yes, legitimate business expenses related to earning commission can be deducted before calculating taxable income.

Q4: When is commission income tax due?
A: For AY 2024-25, the due date is typically July 31, 2024 (unless extended by the government).

Q5: How to pay commission income tax?
A: You can pay online via the Income Tax Department's e-filing portal using Challan 280.