Tax upon bonus, fees & commissions

Bonus

Bonus is taxable on receipt basis and is included in the gross salary in the year in which the bonus is received.

Fees & Commissions

Any fees or commission received by the employee or receivable by the employee is fully taxable and has to be included in gross salary. Commission may be a fixed amount per annum or may be a percentage of turnover or net profit. However, the same is taxable under the head "Salaries" when it is received or receivable by the employee.