Commission Calculator
Commission on a sale, with GST and TDS
Your Commission
- 1Enter the sale valueProperty, goods or services sold
- 2Set the rateAnd whether GST and TDS apply
- 3See the commissionAnd what the agent receives
How is commission calculated?
Commission is a percentage of the sale value. GST is added on top if the agent is registered, and the payer deducts TDS before paying.
Commission = sale value × rate ÷ 100
Agent receives = commission + GST − TDS
Typical commission rates
Real estate brokers in India usually charge 1–2% of the property price (often one month's rent for rentals). Insurance and mutual fund distributors earn trail commissions set by the product.
TDS on commission
A business paying commission or brokerage deducts 2% TDS once the total paid to one person crosses ₹20,000 in a year (section 194H). Insurance commission has similar 2% TDS.
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Frequently asked questions
Is GST charged on brokerage?
Yes, 18%, if the broker is GST-registered (required once turnover crosses ₹20 lakh a year for services).
Who pays the property broker?
Practice varies by city: sometimes both buyer and seller pay about 1% each, sometimes one side pays 2%. Agree in writing first.
Is commission income taxable?
Yes, as business or professional income at your slab rate. TDS deducted counts toward your final tax.
These results are estimates for planning only, not financial, investment or tax advice. Rates and rules change, and your bank, fund house or employer may calculate slightly differently. Check with them or a qualified adviser before you decide.
Last reviewed: October 2026
