Income head of lic agent/post office agent

Can Income of an LIC agent/Post agent receiving commission for accounts referred,be shown as Income from Business/Profession or Income from Other sources.

Replies (4)

Under the Head Income from Other Sources

1)Return of an Post office & Lic agent receiving commission agent has been filed by CA as Business/Profession & filed Balance sheet & P & L a/c,allowing various expense not incurred/Documented by Assessee.

2)As per 26AS,tds on Lic commission was deducted u/s 194D & post office allowances & commission u/s 194H & 194C

3)Whether Return filed by CA is valid ( Please note Assessee is not a CA,CA filed ITR for Assessee)

4)Assessee is not maintaining any Books of Account.

5)Whether such Assessee is liable to maintain books of Accounts,whose Gross income as per Return is always less 4 lacs & claim refund of entire TDS.

The action taken by CA is correct. AS per section 44AA any person having income more than 120000 is liable to maintain account.But when any  TDS is deducted a form no 16A is to be issued to deductee. This form no 16A is a valid document. if you have shown you income as per such form no 16A. Hence you should be carefull about that the income which has been shown in your form no 16A is to be the same filed in your Income tax return.

My doubt is how, commission received by an LIC/Post agent be shown as business income instead of income from other sources.

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