Income as insurance agent.
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
19 November 2013
My friend is doing business of insurance agent, but the license is not on his own name.
He is doing business on license of his brother’s name. After cutting of TDS and any other taxes on commotion earning is deposited in his brother’s A/C.
Now, how can my friend claim that the commission earned is by his work hard or how can my friend get that commission income is his own or how can he transfer that income into his own income.
He is doing business on license of his brother’s name. After cutting of TDS and any other taxes on commotion earning is deposited in his brother’s A/C.
Now, how can my friend claim that the commission earned is by his work hard or how can my friend get that commission income is his own or how can he transfer that income into his own income.
19 November 2013
As such the income is of the brother's. He can transfer the whole of after tax income to your friend. That won't result in any tax liability in your friend's head. However, the same won't be added to your friend's income either.
if you want the income to accrue in your name, you may ask the brother to transfer the Commission net of taxes less some margin to your account as your fees.
However, this would cause problem in the brother's tax return as such a treatment would cause excessive expenditure claim.
if you want the income to accrue in your name, you may ask the brother to transfer the Commission net of taxes less some margin to your account as your fees.
However, this would cause problem in the brother's tax return as such a treatment would cause excessive expenditure claim.
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