12 July 2009
Sir, One of my friends is a LIC agent. He prepared his income and expenditure account relating to his commissions received from LIC. He and his brother has constituted a firm for this purpose and... . the firm shows its income as income from lic agency. the net income after a remuneration to partners of Rs.1,38,000/- is 55,000/-. Since the net income is below Rs.1,20,000/- - is he liable to maintain books of account (gross comm. is less than 10L). - to calculate net income from the purpose of sex 44AA, does it mean net income before interest and remuneration to partners or the net income after such exp. - please answer....
12 July 2009
As per Sec.44AA a person has to maintain his books of accounts if his gross receipts > 10 lacs or Total income exceeds > 1.20 Lacs in any of the three preceding previous years or in case likely to exceed the above limits in current year in case of newly setup business.
Since you are not falling in any condition, you won't have to maintain detailed books of accounts.
Also, Circular No.8-3-1991 needs to be looked upon for Persons having Income from Insurance Commission.
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