1. What is Real Estate Commission Tax?

In India, real estate agents pay income tax on their commission earnings under the head "Income from Business or Profession." Additionally, GST at 18% is applicable on brokerage services provided.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Commission \) — Total commission earned (INR)
• \( Tax\ Rate \) — Applicable income tax rate (%)
• \( GST\ Rate \) — Standard GST rate of 18% (default)

Explanation: The calculator computes both income tax and GST separately, then sums them to show total tax liability.

3. Importance of Commission Tax Calculation

Details: Accurate tax calculation helps real estate professionals comply with tax laws, plan finances, and avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter commission amount in INR, applicable income tax rate (based on your tax slab), and GST rate (default 18%). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What tax slab applies to real estate commission?
A: Commission is taxed as business income under the applicable income tax slab rates (5%, 20%, or 30% + cess).

Q2: Is GST always 18% on real estate commission?
A: Generally yes, but check current GST notifications as rates may change. The calculator allows you to adjust this rate.

Q3: Can I claim GST input credit?
A: If you're GST registered, you can claim input tax credit on expenses related to your brokerage services.

Q4: Are there any deductions available?
A: You can deduct business expenses (travel, marketing, etc.) from commission income before calculating tax.

Q5: When are these taxes due?
A: Income tax as per advance tax schedule or with ITR. GST is due monthly/quarterly based on turnover.