44AD AND LIC AGENTS

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CA Birju Ruchir Desai (Querist)
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18 June 2011 IS 44AD APPLICABLE TO LIC AGENTS??
ACCORDING TO ME LIC AGENTS ARE NOT PROFESSIONALS SO IT APPLIES.
KINDLY REPLY URGENTLY

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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18 June 2011 You are right. LIC Agency is not a profession
and as such it is a business. Section 44AA, defines certain professions ...in which it is not included.

Section 44AD is applicable to agents , but
the income should be declared at a higher
rate than 8% , otherwise it will become difficult for an agent to explain the Investments being made by him.

CA Birju Ruchir Desai

CA Birju Ruchir Desai (Querist)
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21 June 2011 Thanx for your guidance

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