Insurance Income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2011 Insurance Commision Received From LIC is Rs. 13,000.00. Which ITR Form should be filled up?

Its urgent
Thanks in advance

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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08 July 2011 You can file ITR 4, by claiming 50% ad hoc deduction on First year (FY Renewal) premium and 15% on Renewal premium. No deduction on bonus is allowed.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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08 July 2011 The income from insurance commission falls under the head "Income from business or profession " .

CBDT vide its circular no 648 dt 30/3/1993 has allowed ad-hoc deduction to those having gross receipt of commission below Rs. 60,000.
As per the circular
How much deduction if commission is less than Rs. 60,000 in a year?

1. In case of LIC Agents

First Year Commission Ad Hoc Deduction 50 % of first year deduction. maximum Rs. 20,000
Renewal Commission 15 % of renewal commission ,maximum Rs. 20,000
1st Yr + Renewal Commission (If separate figures are not available) 33.33 % of gross receipt.
Bonus Commission NIL

Querist : Anonymous

Querist : Anonymous (Querist)

08 July 2011 Let us say if tds is paid in march, 2011 for the 3 quarter then on which date should we issue form no. 16A?

Form issued quartely

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