For income from insurance agency commission more than 3 lakh. In which form of ITR details of such income is to be filed? And in which section this income should be mentioned Business or profession, or Income from other sources?
Bikash Guru (6 Points)
15 July 2020For income from insurance agency commission more than 3 lakh. In which form of ITR details of such income is to be filed? And in which section this income should be mentioned Business or profession, or Income from other sources?
Narendra Kumar Pandey
(no)
(28 Points)
Replied 15 July 2020
Narendra Kumar Pandey
(no)
(28 Points)
Replied 15 July 2020
CA Payal Gupta
(Chartered Accountant)
(154 Points)
Replied 15 July 2020
Dear Bikash,
In regards to your query, please consider the following explanation mentioned below:
If it is the only source of income and you are earning the commission income as an Insurance agent, then please note the solution for your questions respectively:
1. ITR to be filed: ITR shall be filed in form – ITR 3, “For individuals and HUFs having income from profits and gains of business or profession”. Further, please note that for AY 2020-21, only ITR-1, ITR-2, and ITR-4 are notified by Income Tax department and else forms will be notified soon then you can file your Income Tax Returns accordingly.
2. The section in which to be considered: Section 28 of Income Tax Act, “Profit and Gains of Business and Profession”.
3. Business or Profession or Other sources of Income: Business Income as it is the main source of income. In case, your main source of income is under the head salary then the commission income earned by you will be chargeable under the “Other Source of Income”.
Do let me know in case of any concerns.
RAJA P M
("Do the Right Thing...!!!")
(127325 Points)
Replied 15 July 2020
RAJA P M
("Do the Right Thing...!!!")
(127325 Points)
Replied 15 July 2020
CA Payal Gupta
(Chartered Accountant)
(154 Points)
Replied 15 July 2020
Dear Bikash,
Yes, you have to fill Profit and loss and Balance sheet information while filing ITR 3.
CA Payal Gupta
(Chartered Accountant)
(154 Points)
Replied 15 July 2020
Dear Bikash,
ITR 4 is not applicable as it includes information for presumptive income taxation. In your case, it call for ITR 3 with Nature of business, you can mention code 13018 other financial intermediaries services.
RAJA P M
("Do the Right Thing...!!!")
(127325 Points)
Replied 15 July 2020
RAJA P M
("Do the Right Thing...!!!")
(127325 Points)
Replied 15 July 2020
RAJA P M
("Do the Right Thing...!!!")
(127325 Points)
Replied 16 July 2020
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