Avail 50% discount on all subjects for Nov batch(access till Nov 20th). Use coupon code Nov14.

×

Please Wait ..

Sign-in to your account


Username:
Password:

Remember Me

Forgot your password?

Sign-up now



Join CAclubindia.com and Share your Knowledge. Registered members get a chance to interact at Forum, Ask Query, Comment etc.


Discussion > Income Tax > Tax queries >

LIC Agent's Commission

    Post New Topic
Pages : 1 2





B.COM CA FINAL STUDENT BATHINDA


[ Scorecard : 58]
Posted On 14 January 2010 at 14:22 Report Abuse

Can Anybody tell me Under which head LIC Agent's Commission Income Will be taxable. & What will be the deduction regarding this income.


Online classes for CA CS CMA



Vivek
Finally passed CA Final...!!!!!


[ Scorecard : 1092]
Posted On 14 January 2010 at 14:50

Chargeable under either Business or profession or Income from other source



Total thanks : 1 times




CA Pramod Jain
manager finance


[ Scorecard : 1565]
Posted On 14 January 2010 at 15:29

can be charged under business or profession head




Shriti Daga
Chartered Accountant


[ Scorecard : 102]
Posted On 14 January 2010 at 15:54

ya it depends it can be charged either in business and profession or income from other source if main business of assessee is something else



Total thanks : 1 times



ashish gupta
student


[ Scorecard : 1897]
Posted On 14 January 2010 at 16:11

U can claim the expenses like travelimg, telephone, stationery nd entertainment and show this under business or other sources if its not the main business of the assessee.



Total thanks : 1 times



Shriti Daga
Chartered Accountant


[ Scorecard : 102]
Posted On 14 January 2010 at 16:11

ya it depends it can be charged either in business and profession or income from other source if main business of assessee is something else



Total thanks : 1 times



Amir
Learner


[ Scorecard : 3956]
Posted On 14 January 2010 at 16:54

Dear Puneet,

As rightly said by all-

U can show under PGBP if it is the main or wholse sole source of ur earning...Otherwise Othersources............

Regarding Expenses

Ad hoc deduction to insurance agents - The benefit of ad hoc deduction to Insurance agents of the Life Insurance Corporation having total commission (including first year commission, renewal commission and bonus commission) of less than Rs. 60,000 for the year, and not maintaining detailed accounts for the expenses incurred by them, may be allowed as follows :
 (i) where separate figures of first year and renewal commission are available, 50 per cent of first year commission and 15 per cent of the renewal commission;
(ii) where separate figures as above are not available, 331/3 per cent of the gross commission.
In both the above cases, the ad hoc deduction will be subject to a ceiling limit of Rs. 20,000.
The “gross commission” in (ii) above will include first year as well as renewal commission but will exclude bonus commission.
The complete amount of bonus commission is taxable and will be taken into account for purpose of computing the total income, and no ad hoc deduction will be allowed from this amount.
The benefit of ad hoc deduction will not be available to agents who have earned total commission of more than Rs. 60,000 during the year. The admissibility of the expenditure claimed by such agents will be decided by the Assessing Officers as per the provisions of the Income-tax Act.
This will apply to assessment year 1993-94 and subsequent years—Circular : No. 648, dated 30-3-1993.

 



Total thanks : 1 times



manish
Article Assitant


[ Scorecard : 358]
Posted On 14 January 2010 at 20:13

Commission received as an agent which generate from as a business or profession so it is taxable under head PGBP.  Any commission recieved as other income then it is taxable under head other source of income




RADHIKA JALAN
agarwal


[ Scorecard : 1458]
Posted On 15 January 2010 at 14:48

under the head PGBP........................




Deepak Tapse
Accounts Manager - Taxation


[ Scorecard : 1292]
Posted On 16 January 2010 at 12:43

You can claim expenses upto 20% of commission



There are 10 Replies to this message






Related Files








Related Threads


Post your reply for LIC Agent's Commission



Your are not logged in . Please login to post replies

Click here to login


Not a member yet ?? Click here to signup

Message







    

  • Use thank button to convey your appreciation.
  • Maintain professionalism while posting and replying to topics.
  • Try to add value with your each post.



Forum Home | Forum Portal | Member Control Center | Who is Where | Popular Threads | Today's Topic | Recent Posts | Today's Posts | Post New Topic | Thread With Files | Top Threads This Month | Forum Stats | Unreplied Threads

back to the top