Tax on commission or incentive be treated?

Hi,

For an employee of an Insurance Company. He is paid a commission or incentive on the business created to my company. How should this commission or incentive be treated?

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Include the same in his total income and deduct tax as per the tax liability

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To be considered like salary.

All put together called total income. From total income we can go for deduction like standard deduction, HRA, 80c…etc.

Raghu

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