INCOME OF insurance commission

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This query is : Resolved

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This discussion clarifies how to estimate insurance commission income, particularly regarding potential deductions. While actual expenses can be claimed against insurance commission with proper record-keeping, a 50% deduction is generally only applicable to other professional income if it qualifies under section 44ADA. First-year commission income does not typically allow for a 50% deduction.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)
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15 June 2022 Dear sir/s, can a person estimate income of his insurance commission Rs8,00,000/- by deducting 50% of income, he is having other profession income of Rs.6,00,000/- and bank interest also, can you guide me.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2022 Only actual expenses can be claimed with maintenance of books of accounts on insurance commission income.
50% deduction can be claimed on other professional income if it's eligible for 44ADA option.

Venkateshwarlu Pulluri

Venkateshwarlu Pulluri (Querist)
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15 June 2022 thank you sir, in case of first year commission can we claim 50% of deduction

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2022 No such deduction allowed.

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