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Discussion > Income Tax > ITR >

LIC Commission

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CA Final

[ Scorecard : 99]
Posted On 18 February 2010 at 14:58 Report Abuse

Can 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

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Internal Auditor

[ Scorecard : 511]
Posted On 18 February 2010 at 15:03

 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


[ Scorecard : 3956]
Posted On 18 February 2010 at 15:14

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..........

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[ Scorecard : 1668]
Posted On 18 February 2010 at 15:25

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

[ Scorecard : 284]
Posted On 18 February 2010 at 15:47

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.


Check out this link for further details.

Divya K S

[ Scorecard : 284]
Posted On 18 February 2010 at 15:48

ITR - 2 can be filed in this case.

Nitesh Battu
CA Final

[ Scorecard : 99]
Posted On 18 February 2010 at 18:01

Thanx everybody...............

amit jain
Chartered Accountant

[ Scorecard : 532]
Posted On 18 February 2010 at 22:52

itr 4 would be filed..for this and if commsion is below limit it can be filed on assumed income basis

CA Tushar Lakhanpal

[ Scorecard : 416]
Posted On 19 February 2010 at 08:16

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

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Shraddha Gupta
chartered accountant

[ Scorecard : 74]
Posted On 19 February 2010 at 13:33

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 .

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