Lic commission income

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2018 My total income consists of retail trading business and commission from LIC. The commission from LIC for AY 2018-19 is Rs.75,000/- and from retail trading business is 3,00 lac. My I use ITR 4 and show retail trading business income u/s.44AD and show entire commission as Income from other sources ? Or I will have to use ITR 3 ?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 August 2018 You can offer 75,000 in IFOS and choose ITR 4, if u don't want to go the other way.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 August 2018 I have a simple question that I do keep asking a lot of people. 44AD(6)(ii) says that 44AD does not apply to a person who is earning income in form of commission or brokerage. Doesn't that simply take this person out of 44AD completely?

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2018 Nikhilji. My question is Whether I can show my entire commission receipts as Income from Other Sources in ITR 4 ?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 August 2018 I know the question sir. But my contention is that you cannot use 44AD if you have commission income. I am not sure if other experts agree with me. But that is my fundamental position ie if you have commission income, you are out of 44AD regardless of where you park the commission income.

Querist : Anonymous

Querist : Anonymous (Querist)

07 August 2018 Thanks for your quick reply sir.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 August 2018 you are most welcome....

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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07 August 2018 Yes Nikhil Ji, such a view may come up
If IRDA qualified, he is a professional and
If not qualified, he is a business man (commission agent) meaning thereby in
both cases can't opt 44AD.

Expert : Anonymous

Expert : Anonymous (Expert)

07 August 2018 Very Excellent View Mr Nikhil Kaushik Ji... I'm also the same view. But, No more clarity myself bcoz, Dept processed some of the ITRs... But, Thank You for the View... Thank You for the Confirmation Mr B Chackrapani Warrier Ji...

Expert : Anonymous

Expert : Anonymous (Expert)

Nikhil Kaushik

Nikhil Kaushik (Expert)
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07 August 2018 department processing a return under 143(1) is not a validation of the legal position. Its just a prima facie validation. If picked for regular assessment, you might face a completely different response from AO.

RAJA P M

RAJA P M (Expert)
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07 August 2018 Yes... I agreed to You...

Practically I'm not file presumptive taxation scheme if Asseessee get LiC commission above 50k...

Anyway Thank You Sir...

By
RAJA P M.

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