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)

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)

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)

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)

15 June 2022 No such deduction allowed.

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