deducation

This query is : Resolved

govind (Querist)
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01 August 2010 sir,
how much deduction shall be allowed in respect of inoome earn from insurance (i,e commission).
Can we take insurance commission as a buisness income and fill ITR -4
or treat this income as in other sources .
thanks

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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01 August 2010 TDS on Insurance commission u/s 194D @ 10%.
This income is treated as Professional income and yes you have to fill ITR 4

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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01 August 2010 CBDT vide circular No 648 dated March 30,1993 decided that from assessment year 1993-94 and onwards ad hoc deduction, to insurance agents of LIC having total commission of less than Rs.60,000/- per annum and not maintaining detailed accounts for expenses, may be allowed as under:-
1) 50% of fist year commission and 15% of renewal commission, where separate figures are available.
2) If not available, 33 1/3% of gross commission.
In both cases , the ad hoc deduction is subject to a ceiling limit of Rs.20,000/-

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