Salary - Sales Executives

nayeem21
Dear All
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
Nayeem Manzoor
pon1965
commission is part of income and it comes under I.T. ambit.
Pon
CA Nilay Shah
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.
abedeen7
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.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute