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Lic commission head of income sources

22 March 2017

Respected Members,

If an individual is having other sources, house property, capital gain and salary income and also LIC commsaion.

My query -(1)LIC common.(say Rs.15000) to be shown in business head income or other sources.(2) If we show in business income then in PL i have to show net income 10000 in ITR(after deduxting adhoc deduction 33.33%) and in capital dr. Balance 15000 & surplus in PL cr. Side 15000 in BS part of ITR.

(3) if We treat in other sources income then can we claim adhoc deduction and show only net income of 10000 in other sources head in ITR.

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6 Replies

(Guest)

interest ,divident all this comes under income from

other sources and income from lic commission comes under income form business and profession

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CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 22 March 2017

Adhoc Deduction benefit is available only to Insurance Agent. As per Circular 648 Dated 30.03.1993. Hence commission income received by Insurance Agent is taxable under the head Business & Profession and should not be shown under the head Income from other sources.

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Rajendra Sewda (none) (89 Points)
Replied 22 March 2017

If we treat business income what will be disclosure in ITR form if income is received direct by individual X A/c Debit To commission Credit (no separate accounts were made). Then in ITR Capital dr. Balance and surplus in PL in credit balance in BS part and net income in PL part

CA MANISH BINDAL (CHARTERED ACCOUNTANT ) (535 Points)
Replied 22 March 2017

No Need to fill balanceshee and Profit & Loss account. Just fill Net commission income (In No accounts Maintain). Because Such Adhoc Deduction is only given if No Accounts are maintained.

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