Deductions permissible from insurance commission received

Tax queries 1426 views 6 replies

Total commission received during the year is Rs.166780 as per form 16-A Income from Business Profession calculated on presumptive basis Rs.95000 my question is whether we can deduct some expenses from insurance commission received on Ad-Hoc basis say 30% without maintaining any books of accounts?

Replies (6)

Dear Sir,

As total receipt is less than Rs. 150,000/- there is no need to maintain books of account. You may file return as such. You may deduct adhoc amount as expenses and declare net profit of Rs. 95,000/-

I am not talking about income from business profession. I am talking about Insurance commission which is to classified under Income from Other sources

Income of 95000 is the icome from business other than Insurance Commission

you cannot make adhoc deductions. what you can do is prepare a p&l on estimations and deduct expenses like travelling, telephone, stationery, entertainment etc.

@ ashish ok thanks for the suggestion. but in that case while filing it return we dont need to submit p&l account to department na.. we just need to fill up ITR-4 sugam. If department will ask the p&l only then we 'll submit that P&L a/c. Am I rite

@ CA Aspirant. Yes U are right sir..


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