RECEIPTS FROM U/S 194H

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This discussion clarifies the correct Income Tax Return (ITR) form for an individual who is both a salaried employee and a postal life insurance agent. Given the income from insurance commission exceeding the threshold for TDS under Section 194H, ITR 3 is recommended. The income should be declared under the 'Profits and Gains of Business or Profession' (PGBP) head, and filing with Profit & Loss account and Balance Sheet is advised, even if books of account are not strictly maintained. The advice also touches upon the fact that salary income alone, after deductions, will likely exceed the basic exemption limit, necessitating the filing of a return to claim eligible expenditures.

raghavendra b

raghavendra b (Querist)
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28 December 2021 DEAR SIR,

ONE OF MY CLIENT IS SALARIES EMPLOYEE IN POST OFFICE, AND ALSO DOING POSTAL LIFE INSURANCE AGENT HIS SALARY INCOME IS MORE THAN 500000/- HIS RECEIPTS FROM INSURANCE AGENT MORE THAN 425630/-.

SO IN THIS CASE WHICH ITR IS SUITABLE FOR FILING IT RETURNS WHETHER IT MAY BE ITR 3 OR ITR 4. ITR 1 IS NOT APPLICABLE FOR HIM BECAUSE TDS DEDUCTED U/S 194H.

SOME TIME POSTAL DEPARTMENT ASSAIGN TO EMPLOYEES BY INDIVIDUAL INTEREST THEY CAN DO WORK AS INSURANCE AGENT NOT COMPULSORILY.

PLEASE CLAFIFY ME

YOUR GUIDENCE MUCH APPRECIABLE

REGARDS

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 December 2021 File ITR 3.. Declare the insurance commission income under head 'PGBP'

raghavendra b

raghavendra b (Querist)
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28 December 2021 Thank you sir,
Can we file without books of account cases
Itr3 and file below taxable limit

Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 December 2021 How can it be below taxable limit, when aggregate income is above basic exemption limit?
File ITR 3 with P&L acc & BS. Its not very difficult.

raghavendra b

raghavendra b (Querist)
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28 December 2021 Thank you sir,

Means He is not a professional as per u/s 194h, he is render service behalf of his department now his receipts from his incentives and deduct expenditure on his income

Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 December 2021 Yes, that is the only correct way .

raghavendra b

raghavendra b (Querist)
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28 December 2021 Thank you sir,

Because his salary income 502963 standard deduction -2400 pt 150000 u/s 80c, after that incentives 402580 less actual expenditure on his income May have come under exemption limit so that's why because so I said sir

Regards

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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28 December 2021 Salary income after deductions, itself will be more than 2.50L.
You must file return to claim expenditures... no excuse.

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