IRT - 4

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 July 2011 Dear All,
I am working in a Pvt. co. as a dy. manager and I have another income source from Insurance Commission (last year 42000/-) I have heared about rebat U/s 54 (Not so confident) for 50% on FYC & 15% on Renewal Year Commission.

My query is that first, can I get the rebate on above income?

2nd What amount should I have to show in ITR 4 i.e. Gross (42000/-) or net (22000/-)

Please tell me.

Thanks

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

10 July 2011 Insurance commission Income if below 60000/
then compute your income in 3 parts.
From F Y commission You are allowed 50% Ad hoc Deduction. For Renewal Commission yoy are allow to deduct 15%. Then add Bonus commission also
*
50% FYC+85% RC+ Bonus= Taxable Income from LIC Commission.
*
The total of ad hoc deduction should not exceed20000/-.
For example- If 41000/ is the First Year Commission and 10000/ is renewal commission, you are entitled to claim max. 20000 ad hoc deduction.

You Can show the Gross amount against Gross receipts and Gross Profit and Ad hoc Deduction against Expenses. Net Commission Income will thus be shown as Net Profit in ITR 4

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