Lic-commission

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santosh ramchandra shinde

santosh ramchandra shinde (Querist)
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19 June 2014 How to calculate income of Lic agent in respect of Commission?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 June 2014 what is there to calculate...the commission earned itself is the income...

for expenses, refer Instruction No. 1546, dated 6-1-1984, where adhoc commission doesn't exceed Rs 20,000/-

(i) where separate figures of first year and renewal commission are available, 50 per cent of first year commission and 15 per cent of the renewal commission;

(ii) where separate figures as above are not available 331/3 per cent of the gross commission.

Where income exceeds Rs 20,000/- you need to follow normal section 28-44 rules and regulations.

santosh ramchandra shinde

santosh ramchandra shinde (Querist)
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19 June 2014 still i am not clear

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 June 2014 what is that you are not clear about?

Rupesh Jain

Rupesh Jain (Expert)
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20 June 2014 if your commission income is less than Rs. 60000/- in a year then the the method tell by Nikhil can be use.

if your commission income more than Rs. 60000/- then you have to prepare book of accounts and then file the return in ITR-4.

santosh ramchandra shinde

santosh ramchandra shinde (Querist)
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20 June 2014 thanks sir...now clear.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 June 2014 its not 60000...its 20000...

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