Deduction from Commission received from LIC
This query is : Resolved
16 August 2020
Please help me, How much deduction is available to a LIC Agent commission received from LIC , for the purposes of computation of taxable income ?
17 August 2020
Dear Vishwa Bandhu Ji, If you earn a first-year commission, you will get a deduction of 50% of the first-year commission amount. If it is a renewal commission then, it will be 15% of the renewal commission amount. But remember the maximum deduction allowed can not be more than Rs. 20,000.
Also, If the commission amount is not separately known then, 1/3 of the gross commission amount will be allowed as deduction (Maximum limit of Rs. 20,000 is applicable here also).
REMEMBER ALL THIS DEDUCTION WILL BE AVAILABLE ONLY IF TOTAL COMMISSION INCOME IS LESS THAT RS. 60,000 IN A YEAR
Also, If the commission amount is not separately known then, 1/3 of the gross commission amount will be allowed as deduction (Maximum limit of Rs. 20,000 is applicable here also).
REMEMBER ALL THIS DEDUCTION WILL BE AVAILABLE ONLY IF TOTAL COMMISSION INCOME IS LESS THAT RS. 60,000 IN A YEAR
17 August 2020
In case you maintain books of accounts, then all expenses incurred to earn commission income shall be deductible on actual basis.
17 August 2020
however, you can also file return on presumptive basis u/s 44ada
17 August 2020
How can a person earning income in the nature of the commission declare its income on a presumptive basis?
Sec 44AD(6) specifically excludes commission income to be declared on a presumptive basis. Also, Sec 44ADA applies on professional, and commission income is not a professional income.
Sec 44AD(6) specifically excludes commission income to be declared on a presumptive basis. Also, Sec 44ADA applies on professional, and commission income is not a professional income.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Refund Annexure-B
- Sale of Equity shares for Purchase of Residential Property
- Liable to deduct tds and 44ADA
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- Gstr7 vs Gstr3b 2026
- Gst return - cess
- Is Interest applicable for payment made through credit ledger vide DRC03 for FY 2020-21 & 2021-22
- ECO SUPPLY REPORTIONG IN GSTR-1
- E Commerce GSTR1 & 3B how to file
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS PROCEDURE ON SALE OF IMMOVABLE PROPERTY BY NRI
- Refund of 20%pre-deposit paid for stay application
- ASISSE return under the provisions of the Collection of Statistics Act, 2008 (7 of 2009)
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
