Insurance commission income is taxed in two ways - TDS at source and overall income tax at filing. Plus GST applies in certain cases.

TDS on Insurance Commission

Insurers deduct TDS at 5% on commission paid to individual agents under Section 194D. The threshold is Rs.15,000 per financial year.

Income Tax - How Commission Is Treated

For individual agents, commission is treated as 'Income from Other Sources' or 'Business Income'. Slabs apply. Expenses are deductible.

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GST Applicability

Individual agents earning under Rs.20 lakhs/year are GST-exempt. Above that, GST registration is mandatory and you charge 18% GST.

Year-End Filing Workflow

Use Agenex's accounting module to generate annual income summary, TDS deducted, expenses claimed and net taxable income.

FAQ

5% under Section 194D when commission exceeds Rs.15,000.

Only if annual commission exceeds Rs.20 lakhs.

Yes - all legitimate business expenses are deductible.

Download 26AS quarterly, compare against your Agenex commission report.

Yes - basic exemption limit applies.