Commission under Tax Planning Considerations in Respect of Salary Income :

The Supreme Court in Gestetner Duplicators Pvt. Ltd. Vs. CIT 117 ITR 1 (SC) has held that if under the terms of employment commission is payable at a fixed percentage of turnover achieved by an employee such commission should be taken into account for calculating “salary” for the purpose of gratuity etc. The emp loyer will be well advised to provide for such commission.