1. What is Salary + Commission Calculation?

This calculator helps employees in India who earn both a fixed salary and sales commission to determine their total take-home pay after TDS (Tax Deducted at Source) deductions. It's particularly useful for sales professionals, agents, and brokers.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Salary — Fixed monthly salary in INR
• Sales Amount — Total sales value in INR
• Commission Rate — Percentage of sales paid as commission
• TDS Rate — Tax Deduction at Source percentage as per Indian tax laws

Explanation: The calculator first computes commission earnings, then adds it to base salary, and finally deducts TDS from the total amount.

3. Understanding TDS in India

Details: TDS (Tax Deducted at Source) is income tax deducted by the employer/payer when making payments. For commission income, TDS is typically deducted under Section 194H of Income Tax Act at 5% (if PAN provided) or 20% (if no PAN).

4. Using the Calculator

Tips: Enter all amounts in INR. Commission and TDS rates should be entered as percentages (e.g., 5 for 5%). The calculator automatically computes commission earnings, TDS deduction, and net pay.

5. Frequently Asked Questions (FAQ)

Q1: Is commission taxable in India?
A: Yes, commission income is fully taxable under "Income from Business/Profession" or "Income from Other Sources".

Q2: What is the TDS rate for commission in India?
A: Typically 5% if PAN is provided (under Section 194H), or 20% if PAN is not provided.

Q3: Are there any exemptions on commission income?
A: No specific exemptions, but standard deductions under Section 16 and Chapter VI-A may apply.

Q4: How is commission treated in Form 16?
A: Commission is included in your total income and reflected in Part B of Form 16 if TDS was deducted.

Q5: Can I claim expenses against commission income?
A: Yes, if commission is treated as business income, you can deduct related expenses incurred to earn that income.