Nitesh Battu (CA Final) (104 Points)
18 February 2010Can u tell me that COMMISSION EARNED BY LIC AGENTS, comes under which Head, either its salary or PGBP or Other sources,................ and also, If return to be filed by a assessee with ONLY this income. which ITR form to be submit............. ITR 1 or 4
llllVICTORllll
(Internal Auditor)
(511 Points)
Replied 18 February 2010
ITR 4, and its income from Business and Profession, and claim all the expenses incurred in earning the commission while filing the return. so make a Income and expense statement. and computer income tax on Net profit after considering sec 80 benefits and TDS already deducted
Amir
(Learner)
(4016 Points)
Replied 18 February 2010
Dear Nitesh,
There is no hard & fast rule & it can come under either of the heads depending on whether it is a whole sole activity which the employee is doing or is just an additional source of earning income.....
Provision of taxing it will be same under both the heads..........
Ameet
(L)
(1678 Points)
Replied 18 February 2010
Its depend upon the you, whether u r considering as main income then consider it under Business or Profession head and claim and related expenses - ITR 4
otherwise under Income from Other sources - ITR - 1
Divya K S
(CA)
(289 Points)
Replied 18 February 2010
Hi everyone,
The commission earned by an LIC agent comes under the head 'Income from other sources'. I had done it for one of our clients. An ad hoc deduction u/s 57 can be claimed by the assessee for such income & no other expenditure & deductions can be claimed for such income. Check out the conditions for availibility of ad hoc deduction u/s 57.
https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/DTL2008/sec_057.htm
Check out this link for further details.
amit jain
(Chartered Accountant)
(532 Points)
Replied 18 February 2010
itr 4 would be filed..for this and if commsion is below limit it can be filed on assumed income basis
CA Tushar Lakhanpal
(CA)
(416 Points)
Replied 19 February 2010
LIC is considered as business income only if it is the main income of the assessee...
bt if it is not the main income then considered under other sources...
expenses are still allowed as deduction
main income can be determined by comparing the income with total income
Shraddha Gupta
(chartered accountant)
(74 Points)
Replied 19 February 2010
i hv allready filed a return for 4 to 5 yrs of one of my client who is a lic agent under Business & profession.
it can also come under other sources if it is not his main business. If you r considering it as b & p income can be computed on assumed income basis if it is below the limit .
Shraddha Gupta
(chartered accountant)
(74 Points)
Replied 19 February 2010
If the gross recpt exceeds 60000 u hv to prepare Balance sheet. An LIC Agent whose gross receipts of commission exceeds Rs.60,000/- can not claim any expenditure as deduction unless he maintains books of account. Please refer CBDT circular published in 201 ITR.
Dipak Jagade
(CA Student)
(29 Points)
Replied 23 July 2011
pls. tell me, which ITR form use for income from commission only and time for TDS refund from IT dept.
A CHENCHUMOHAN
(CHARTERED ACCOUNTANT)
(48 Points)
Replied 24 July 2011
Hi everybody:
For Asst year 2011-12 there is an interesting provision U/s 44AD - Presumptive Tax. The Section covers "ANY BUSINESS" other than plying of vehicles.
LIC Commission has been held as "Income from Business" (as opposed to Income from profession). Since, this business is not excluded by the above section I feel it is advisable to file ITR-4 (ITR-4S) and show gross receipts of commission and offer 8% thereof for Taxable Income. Ofcourse no deductions (Other than Salary of partners in case of a P Firm).
The various clarifications / circulars bt IT Dept (CBDT) were applicable before this ammended/new section vroughtin for Asst year 2011-12.
Any Comments? WELCOME.
Chenchumoham .a.
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