How to save TDS on Commission Income

Share
Share This Thread
  1. Harsh Wadhwa

    Harsh Wadhwa New Member

    Please tell me if Mr X is getting salary from a real estate company and receiving salary of Rs 15000 which is below tds liablity , and he is getting commission Rs 350000, in fy 2013-14. Company deducted tds Rs 35000 on his commission , please tell me how can i save my tax and get refund,,,,, please what type of investment i can do??
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    Total Income for the financial year 2013-14

    Salary: 15000 * 12 = 1,80,000
    Commission Income = 3,50,000
    Total Income = 5,30,000

    Assuming there are no expenses incurred by you and no investment under Section 80C - your total taxable income in this case would be 5,30,000

    Nil Tax upto Rs. 2 Lakhs - Nil
    10% Tax on income between 2 lakhs and 5 lakhs - 30,000
    20% Tax on Income above 5 Lakhs - 6,000

    Total Tax payable is Rs. 36,000 whereas TDS Deducted is 35,000. As the tax payable is more than the TDS deducted - therefore you cannot save your TDS.

    Infact Cess @ 3% would also be levied on Rs. 36,000
     
  3. gaurav_kumar

    gaurav_kumar Well-Known Member

    however, in case you have incurred any expenses in earning the commission income - that will reduce your income for the year which will inturn reduce your tax liability.
     
  4. Harsh Wadhwa

    Harsh Wadhwa New Member

    First of all Thanks Mr. Gaurav for you response.
    Sir, can a employee of a company cliam expenses for earning the commission ????
     
  5. Harsh Wadhwa

    Harsh Wadhwa New Member

    if it comes under fy 14-15, sir please suggest how can he save tax????
     
  6. gaurav_kumar

    gaurav_kumar Well-Known Member

    1. Yes, you can claim expenses which have been incurred by you in earning this income. You can claim expenses like your Petrol Bills, Phone Bills, Interest Bills etc.

    2. For FY 2014-15, Nil tax is levied upto Rs. 2.5 Lakhs. Moreover, deduction under section 80C is also increased to Rs. 1.5 Lakhs.
     
  7. Harsh Wadhwa

    Harsh Wadhwa New Member

    Sir, if i claim expenses , then return will be filed on itr 4 and it will be pgbp income. then there will be two income one salary and pgbp,
    is it correct??
     
    Last edited: Dec 3, 2014
  8. gaurav_kumar

    gaurav_kumar Well-Known Member

    Yes, you are correct.

    The return would be filed in ITR 4 and it would show income under head Salary as well as Income under head PGBP
     
  9. Harsh Wadhwa

    Harsh Wadhwa New Member

    Sir, Can assessee claim deduction of fds in scheduled bank of 5 year on behalf of his family members,,,,, like Here Mr. X make fixed deposite of his children of Rs 75000 each, can he claim deduction u/s 80c for such fixed deposits,,,,,,,


    Thank u sir ,,,,,
     
    Last edited: Dec 2, 2014
Draft saved Draft deleted
Loading...
Similar Threads Forum Date
How To Save Tax? Income Tax Nov 13, 2018
How to save tax on a inherited property Income Tax Mar 7, 2018
How to save tax on long term Capital gains Income Tax Nov 24, 2017
Save Tax Income Tax Apr 25, 2017
Can we save FDR interest to be taxed Income Tax Apr 1, 2017