applicability of section 44 AD on Insurance agent

Tax queries 4209 views 4 replies

Mayur Agrawal

Audit and Tax Practice

657 Points Joined August 2008

According to ammendment in section 44AD it includes "any business".

whether any business includes insurance agency / Mutual fund agent ?

For the purpose of Audit under section 44AB insurance commission shall be 60 lakhs or more. ie. applicable for business.

But circular nos. 594, 648, 677 are also applicable. which talks about taxation of insurance commission in case books of accounts not maintained and gross commission is less then 60000.

Now, If the gross commission is more than 60000 whether it will be covered by section 44 AD or not ?

Please post your comments and views.

Replies (4)

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

/articles/critical-analysis-of-section-44ad-9048.asp

U S Sharma

glidor@gmail.com

21068 Points Joined January 2010

Commission is Professional income of assessee and catagorized in PGBP, but unfortunately 44AD doex not cover "income from professions"

Paras

Mcom CA Final

122 Points Joined July 2009

44AD covers any business except transport business .Eventually section does not include any presumptive basis for any Profession.

SEC. 44AD is applicable on insurance agents whose activities has been declared as business by the ICAI...u can check the same on Page 27 of the Guidance Note "Tax Audit under Section 44AB
of the Income-tax Act, 1961" issued by ICAI....i am giving a link of the same here..please check point 4.4(iv) on page 27 ..

https://220.227.161.86/21025guide_44AB_dtc.pdf

Regards...