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Business income u/s.44AD and insurance commission

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MURALIDOSS

INCOME TAX PRACTITIONER

1023 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 (3)

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...!!!"

77833 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...

sabyasachi mukherjee

Profession

19978 Points Posted on 23 July 2023

Business income under sec 44ad .pls zctuoal turnover...

Aashok Kumar Sharma

Finance/Compliance Consultant

77162 Points Posted on 07 November 2026

Split the two incomes:

• Sales turnover of Rs 35 lakh (trading or online delivery business): can be offered under Sec 44AD at 6%/8% (no books).

• Insurance commission: Sec 44AD(6) excludes commission income. Offer it under business income on actual basis (commission less related expenses), in the same ITR.

• Form: ITR-3 (ITR-4 only allows presumptive income, so the commission at actuals can't go there). Commission income at actuals within ITR-3: books required if income from it exceeds Rs 2.5 lakh or receipts exceed Rs 25 lakh (Sec 44AA(2)).

• Claim the 194D TDS.