Lic-commission
This query is : Resolved
19 June 2014
How to calculate income of Lic agent in respect of Commission?
Nikhil Kaushik
(Expert)
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.
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.
19 June 2014
still i am not clear
Nikhil Kaushik
(Expert)
19 June 2014
what is that you are not clear about?
Rupesh Jain
(Expert)
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.
if your commission income more than Rs. 60000/- then you have to prepare book of accounts and then file the return in ITR-4.
20 June 2014
thanks sir...now clear.
Nikhil Kaushik
(Expert)
20 June 2014
its not 60000...its 20000...
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