Commission income

HELLO FRIENDS, MY CLIENT HAS ONLY LIFE INSURANCE COMMISION INCOME3,25,000.

HE DOES NOT WANT TO CLAIN ANY EXPENSE AND WANT TO TAKE REFUND.

BUT I AM CONFUSED THAT IN ITR-4 IN WHICH COLUMN I SHOWTHIS INCOME BECAUSE AFTER 1,20,000 BOOKS OF A/C IS NECESSARY.

PLS. HELP ME. HOW I FILL ITR-4.

 

Replies (4)

PLS. REPLY ANYBODY.

Hi,

 

Show it as Gross receipts/Income under P & L.

 

As the assessee is not claiming any expenses, even a statement/list of gross receipts as per Bank statement will be considered as books of account. As the assessee is not claiming any expenditure, assessing officer will be more than Happy not to insist for Books!

PLS. ANY MORE REPLIES.

Income from insurance commission should be taxable under head income from other sources , it will not be cover under bussiness and profession since  it is not backed by any special knowledge it is not a profession and also clearly it is not a bussiness . 

for tax saving you can go for deduction under section 80C and rest basic exemption limit . say 

 income from commison =               Rs325000

 Less : deduction u/s80c              =  Rs 100000

 Less :  basic exemption limit       = Rs 160000

balance amount taxable                 = Rs 65000

for which you can also avail deduction for section 80D , 80DD , 80DDB, Making your income nil and you will get refund of TDS as deducted by your company u/s194D.

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