Commission of insurance agents

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BK DUREJA

Management Advisor- Finance

25 Points Posted on 25 July 2014

Dear friends , pl advice and clarify....

. In case of a Insurance Agent of a Insurance co., other than Lic , the commission is received in two parts I.e insurance commission and bonus commission. Tds and Service tax is deducted @ 10% and 12% resp. On the gross income. The agent is also in receipt of pension and has income from interest on FDs and CG from shares trading/investment.

Would request to advice on ...

The treatment of service tax, is it an expense ?

Other permitted expenses where no accounts are maintained. ...Limit of Ad-hoc deduction admissible ?

If ITR Form 4 is the one to be used or any other say ITR 4S ?

Replies (2)

Tribhuvan Aditya Singh

Student as well as Self-employed

3853 Points Posted on 25 July 2014

itr 4 will be applicable in your case... s.tax will be allowable exp. since he wont have a s.tax no.... no adhoc exemption but expenses can be claimed to the extent actually incurred or a lump sum amt (not more than what is normally incurred).

BK DUREJA

Management Advisor- Finance

25 Points Posted on 25 July 2014

Thanks dear Tribhuvan A Singh, here I would request you to refer the CBDT CIRCULAR NO.648 DATED 30-03-1993, which states deductions admissible to an LIC Agent. Would you pl clarify if the same circular is applicable to the other Private Insurance companies under IRDA also. If not any similar provisions please

regards