Commission income refers to the earnings received by an individual or business for providing services that facilitate sales, transactions, or agreements between parties. Common examples include real estate agents earning a percentage of property sales, brokers earning fees for stock transactions, or businesses earning commissions on product distribution. Commission income is typically calculated as a percentage of the value of the transaction or sale completed. Under Indian tax laws, commission income is taxable as part of the total income under the head “Profits and Gains from Business or Profession” or “Income from Other Sources,” depending on the nature of the activity. Accurate record-keeping, including invoices, agreements, and transaction details, is essential for compliance and tax reporting. Timely reporting and payment of taxes on commission income prevent penalties, interest, and legal scrutiny from authorities. Professional guidance is often recommended to determine the correct tax treatment, apply eligible deductions, and ensure proper filing of returns. Proper management of commission income contributes to financial transparency, regulatory compliance, and sustainable business operations.