Computaion of Income of LIC Agent (Only Commission Income)

 

(Querist)
09 October 2009


Dear Sir
Please reply for following queries

1)How to compute income of LIC Agents if he only receives commission from LIC

2)What are the deduction can be claimed and tax rate

Thanking You
Deepak Waghmare




Guest (Expert) 09 October 2009

Ad hoc deduction from gross receipts of commission can be claimed as deduction by agents of LIC in the following manner:

Where separate figures of first year and renewal commission are available:

50% of first year commission

15% of renewal commission

Where separate figures are not available, 33.33% of gross commission

In both cases, the ad hoc deduction will be subject to a ceiling limit of Rs.20,000.00

Here, gross commission will include first year as well as renewal commission but will exclude bonus commission.

Ad hoc deduction will not be available to the agents who have earned total commission of more than Rs.60,000.00 during the year.


Deepak (Querist)
09 October 2009

Respected sir

Thank you for reply.
But can you Expain me it with an example.



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