Commission Received From LIC

One of my friends received Rs. 2,12,000 from Insurance Company towards Commission. The company deducted TDS @ 5%. How to get Refund of this TDS. Can he file IT Return under Section 44 AD or Under Section 44 ADA ? Please guide me.
Replies (2)
Quick Summary
A friend received a substantial commission from LIC, with TDS deducted. They are asking for advice on how to claim a refund and whether they can file their Income Tax Return (ITR) under sections 44AD or 44ADA. The advice clarifies that commission income earners cannot use presumptive taxation schemes like 44AD or 44ADA. The correct ITR form depends on the nature of the commission income: ITR-1/2 for one-off or casual income, and ITR-3 for regular, substantial annual commission income treated as business income. Guidance is also sought on claiming expenses and showing net profit for commission businesses.

Person earning income from commission / brokerage can not opt for prespative Taxation. As your friend is earning income from commission, he can not file return u/s 44AD or 44ADA.

In your case, if the Income from commission is one time and/or casual in nature (some time it may be there and some time it may not be there) then it needs to be considered as income from other sources and ITR1/2 shall be most suitable.

However, if the income from commission is going to be substantial, every year and year after year, if it's regular in nature then such income shall fall under income from business and Profession and ITR 3 shall be suitable.

So, from this year and thereafter if every year you will going to receive this income than, You can file return in ITR 3 as business income.

How much expense claimed commission business and what percentage show of net profit/total received??? plz suggest

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details
Company
27 August 2026
ACCOUNTANT

CHARUPREETI & CO

Noida

Graduate (Any)

View Details
Company
25 August 2026
Senior Accountant

MG Associates

New Delhi

CA Inter

View Details
Company
04 September 2026
CA inter Or ca finalist

A Jaiswal and company

Lucknow

CA Final

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 01 September 2026
Article Assistant

SGNG & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details