Lic agent commission

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shikha (Querist)
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01 September 2014 hello sir,

i am filing the return of LIC Agent. he has received the total commission of rs 768321 (incl f.y commission, renewal commission , bonus ) i have put all theses details under the head income from business and profession. now i want to know about the deduction of 50 % and 15 % respectively . whether i have to prepare p/l account or not ??

no books are maintained by him

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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01 September 2014 adhoc deduction for lic agent is applicable , if the gross receipt are not more than sixty thousands only. it is 50% on first year comm, 15 % on renewal comm.and 33% of total comm , if separate detail for first year and renewal comm is not available.
in ur case , as the gross receipt are more than 60,000/- , ur have to prepare books of account / p & l and balance sheet to file the ROI

CA SUNIL K GARG

CA SUNIL K GARG (Expert)
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01 September 2014 pls refer circular no 594 dated 15 may 1991., circular no 648 dated 30.03.1993

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