Net profit for commission agent

This query is : Resolved

VINAY SACHDEVA (Querist)
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29 July 2012 A LIC agent having commission of Rs. 570755/- and Income U/S 44 AD of Rs. 33050/- (8% on Rs. 413088). How much expenses he can shows to saving his maximum TDS.

Or

Can he shows 65% expenses from his Commision Income using Balance Sheet and Income Expenditure Account in his ITR 4.

Plz. reply soon.

Vinay Sachdeva

Amol S Joglekar

Amol S Joglekar (Expert)
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29 July 2012 The old circular of CBDT for LIC commission says 50% for First year commission and 20% for renewal commission. Keeping this in mind, your claim should be well substantiated by vouchers before claiming the expenses.

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