I am working in a newly formed company.
My query is that:
We are planning to pay staff salary thru bank. Our Sales Executives are earning Salary + Commission for the sales. Salary is paid between 5 and 10 every month and commission
is paid by the end of month. So, if we are paying both thru bank, should the staff has to pay Income Tax, because their basic salary is Rs. 9000.00 and commission will achieve nearly 26000.00 per month.
Please advice whether we should go through bank or is there any other way to pay the commission to avoid income tax.
Thanks and regards
From India, Palakkad
HI, As discussed you need to pay Income Tax on both salary + Commission, as it is a part of your salary payable to your sales team. You need to pay tax on the same even if don’t pay thru bank.
From India, Ahmadabad
Income tax should be paid by each eligible employee. You cannot avoid it and employer is liable to collect all investment proof and earning details. On basic of that employer will deduct TDS.
This will be as serious issue and employer may be penalized if found guilty. Hope you find this appropriate.
From India, Bhubaneswar