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?

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

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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