Computation of Insurance Commission
This query is : Resolved
16 April 2009
Under Section 44 of income tax act, how is the computation of income from insurance commission is done.
In first year.
for renewal income &
for bonus commission.
In first year.
for renewal income &
for bonus commission.
17 April 2009
The income from insurance commission falls under the head "Income from business or profession " .
CBDT vide its circular no 648 dt 30/3/1993 has allowed ad-hoc deduction to those having gross receipt of commission below Rs 60,000.
As per the circular
How much deduction if commission is less than Rs 60,000 in a year?
1. In case of LIC Agents
First Year Commission Ad Hoc Deduction 50 % of first year deduction. maximum Rs 20,000
Renewal Commission 15 % of renewal commission ,maximum Rs 20,000
1st Yr + Renewal Commission (If separate figures are not available) 33.33 % of gross receipt.
Bonus Commission NIL
CBDT vide its circular no 648 dt 30/3/1993 has allowed ad-hoc deduction to those having gross receipt of commission below Rs 60,000.
As per the circular
How much deduction if commission is less than Rs 60,000 in a year?
1. In case of LIC Agents
First Year Commission Ad Hoc Deduction 50 % of first year deduction. maximum Rs 20,000
Renewal Commission 15 % of renewal commission ,maximum Rs 20,000
1st Yr + Renewal Commission (If separate figures are not available) 33.33 % of gross receipt.
Bonus Commission NIL
17 April 2009
The income from insurance commission falls under the head "Income from business or profession " .
CBDT vide its circular no 648 dt 30/3/1993 has allowed ad-hoc deduction to those having gross receipt of commission below Rs 60,000.
As per the circular
How much deduction if commission is less than Rs 60,000 in a year?
1. In case of LIC Agents
First Year Commission Ad Hoc Deduction 50 % of first year deduction. maximum Rs 20,000
Renewal Commission 15 % of renewal commission ,maximum Rs 20,000
1st Yr + Renewal Commission (If separate figures are not available) 33.33 % of gross receipt.
Bonus Commission NIL
CBDT vide its circular no 648 dt 30/3/1993 has allowed ad-hoc deduction to those having gross receipt of commission below Rs 60,000.
As per the circular
How much deduction if commission is less than Rs 60,000 in a year?
1. In case of LIC Agents
First Year Commission Ad Hoc Deduction 50 % of first year deduction. maximum Rs 20,000
Renewal Commission 15 % of renewal commission ,maximum Rs 20,000
1st Yr + Renewal Commission (If separate figures are not available) 33.33 % of gross receipt.
Bonus Commission NIL
17 April 2009
If someone is having income of 1,10,000 form LIC as isurance commission than his/her income will be fully taxable?
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17 April 2009
If someone is having income of 1,10,000 form LIC as isurance commission than his/her income will be fully taxable?
17 April 2009
In that case, the assessee will claim expenses on actual basis subject to the maintenace of accounts and vouchers which may be substantiated as an when called for to do so by the AO.
17 April 2009
it means that it will be than treated as a normal business, where exoenses ill claimed and commission will be income/revenue?
18 April 2009
Yes, it is to be treated like a normal business activity; accounts prepared and P&L drawn.
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