1Is commission income taxable after TDS is deducted?
Yes — TDS is only an advance; the income is taxed at your slab. Claim full credit for the TDS in your 26AS against your final tax, and report the commission your AIS already shows.
Commission agents — insurance, mutual fund, real estate and sales agents — earn business income that usually arrives after TDS. The tax saving comes from claiming your real costs and your personal deductions, and getting the TDS credit right. Here's how.
Reviewed by CA Harika Chebolu, FCA · Last updated 2026-06-15
Quick answer
Commission income is business income with TDS — so claiming real expenses, reconciling 26AS, and using personal deductions are the levers. Here's how agents save tax.
Commission is business income, so the costs of earning it are deductible: travel and fuel, phone and internet, office or co-working rent, marketing, client entertainment and staff. If your real expenses are significant, claiming them against gross commission can sharply cut taxable income.
Companies deduct TDS before paying your commission, and it shows in your 26AS/AIS. Claim full credit for it against your final tax — agents commonly leave TDS credit unclaimed or under-report commission that the AIS already shows, which causes both overpayment and notices.
Note that pure commission and brokerage income is generally excluded from the 44AD presumptive scheme, so most commission agents keep books and claim actual expenses rather than declaring a flat percentage. Confirm your specific case before assuming presumptive is available.
Because commission comes after TDS but your real tax depends on income after expenses, estimate your net and pay advance tax in the four instalments if tax exceeds Rs 10,000. This avoids 234B/234C interest and the year-end scramble.
Yes — TDS is only an advance; the income is taxed at your slab. Claim full credit for the TDS in your 26AS against your final tax, and report the commission your AIS already shows.
Yes — commission is business income, so travel, phone, rent, marketing and staff costs are deductible. Claiming genuine expenses against gross commission is the main way agents reduce tax.
Generally no — commission and brokerage income is excluded from 44AD. Most agents keep books and claim actual expenses instead; confirm your specific situation before relying on presumptive.
Commission across several companies with TDS to reconcile? Write to the firm and we'll claim every credit and expense.