1. What is Commission Income Tax?

Commission income tax is the tax levied on income earned through commissions in India for Assessment Year 2025-26. It's calculated as a percentage of the total commission income earned during the financial year.

2. How Does the Calculator Work?

The calculator uses the simple tax formula:

Where:

• Commission Income — Total income earned from commissions (INR)
• Tax Rate — Applicable tax percentage for AY 2025-26

Explanation: The calculator multiplies your commission income by the tax rate percentage to determine your tax liability.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with Indian tax laws, and helps avoid penalties for underpayment of taxes.

4. Using the Calculator

Tips: Enter your total commission income in INR and the applicable tax rate percentage. The default tax rate is set to 30% which is a common rate for commission income, but you should verify the exact rate with current tax laws.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard tax rate for commission income?
A: For AY 2025-26, commission income is typically taxed at your applicable income tax slab rate, often around 30% for most professionals.

Q2: Can I claim deductions on commission income?
A: Yes, you may be able to claim certain business expenses related to earning the commission income, subject to tax laws.

Q3: When is commission income tax due?
A: Tax on commission income is generally paid through advance tax installments or by the filing due date (usually July 31 of the assessment year).

Q4: Is TDS applicable on commission income?
A: Yes, in many cases the payer must deduct TDS (Tax Deducted at Source) at 10% or the applicable rate before paying commission.

Q5: How does this differ from salary tax calculation?
A: Commission income is typically taxed as business/professional income rather than salary, with different deduction rules and no standard deduction.