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Business income u/s.44AD and insurance commission

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MURALIDOSS

INCOME TAX PRACTITIONER

1329 Points Posted on 22 July 2023

SIR,

A PERSON DOING SALES TURONVER OF RS.3500000/- AND ALSO THROUGH ONLINE DELIVERY BUSINESS RECEIPTS 50000/- , HE IS HAVING ANOTHER INCOME OF RS.25000/- AS INSURANCE COMMISION.

CAN I PUT 50000/- @ 6% ELECTRONIC MODE

3500000 @ 8% RATE

AND THE INSURANCE INCOME 20000/- AS BUSINESS INCOME TO SHOW WHERE?

ALSO HE GOT OTHER SOURCES INCOME SUCH AS DIVIDEND , INTEREST

Replies (2)

Quick Summary

This discussion clarifies the tax treatment of business income under Section 44AD and insurance commission. It explains that insurance commission is generally not covered under Section 44AD and requires maintaining books of accounts. The recommended approach involves filing ITR-3, declaring actual turnover, and showing insurance commission as business income within the Profit and Gains from Business or Profession (PGBP) section.

RAJA P M

"Do the Right Thing...!!!"

128157 Points Posted on 22 July 2023

Commission income not covered under sec 44ad. Also it's required books of Accounts case...
So, ITR 3 is suitable for you and you have a suitable column in PGBP...