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income of LIC agents under which head??

JIGAR SHAH (CA) (37 Points)

12 March 2010

Hellozz..

Under which head to be shown???

Income earned by LIC agents which is their only source of income....

whether B&P Income i.e. Business Income or Income from Other Sources...!!!!!!!

Thanks....

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12 Replies

shushantsinghal (BCOM(HONS),C.A) (283 Points)
Replied 12 March 2010

this shall be income from business ....& u just prepare the p&l a/c and claiming the expenses like one emloyee salary,telephone exp,misc exp,conveyence,service tax ........& file ur ITR IV AND claim all the refund....

THANX...

1 Like

saravanan (proprietor) (71 Points)
Replied 12 March 2010

YOUR COMMISSION UNDER RS.6000 YOUR INCOME UNDER OTHER SOURCES AND CLAIM IT DEDUCTION.

ABOVE RS.60000 UNDER BUSINESS INCOME AND CLAIM ALL THE EXPENSES

SARAN

1 Like

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 12 March 2010

In order to avoids any complexity simply u cn file it with Income from other sources......

regards,

ratan

1 Like

CA Pramod Jain (manager finance) (1577 Points)
Replied 12 March 2010

I would suggest to claim it as income from business and get benefit of expense deduction

1 Like

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 12 March 2010

If commission income is high and various expenses incurred by agents then cn be treated as business income otherwise from other sources.

i hd too file the return of my brother who is LIC agent as "Income from other sources".

regards,

ratan

1 Like

Bimal Thacker (Proprietor) (762 Points)
Replied 12 March 2010

Proper head is Income under the head Business or profession

1 Like

Divya K S (CA) (289 Points)
Replied 12 March 2010

It falls under the head 'income from other sources'. If commission income is less than Rs. 60,000, there is a deduction available & no other expense is deducitble. Hence, if commission is more than 60,000 its better to show it under the head 'income from business' to claim all the expenses.

1 Like

Dintakurthi Tirumala (CA FINAL) (15989 Points)
Replied 12 March 2010

The main source of income should be BUSINESS INCOME. secondary income i.e it is only addition to main income is income from other income. For example: in my case my father was an business man it was his main income as well as he also agent in shriram chits not for the purpose of gain income from it it was only addition to his income. so we offered income and expenditures from business under business income head and commission and expenditure from chits under income from other sources. so in your case if the income from lic agent was primary and he was depended on that income u should claim under business income head other wise under income from other sources.NOTE: Expenses also eligible for deduction even the income shows under income from other sources head. Please refer section 28 and 56 for clearification. i.e clasification of income wheter business or not should be depended on the nature of income but not on the sources of income however 8 types of incomes should be clasified under income from other sources with some exemptions under section 56. please refer section 56 for that types of income

OM SAI SRI SAI JAI JAI SAI

1 Like

CA. Rahul Dadhich (Chartered Accountant) (26 Points)
Replied 12 March 2010

In my view, it should be shown under the head PGBP & claim all expenses against such commission income. However, if this is a part time business & such commission income forms a meagre part of the total income & no expenses have been incurred to earn such income, then it will not be wrong to classify under "Income from other sources".

1 Like

CA RAJIV BANSAL (ACA ACMA LCS AIIA ACFA M.COM B.COM) (122 Points)
Replied 13 March 2010

I agree that if such income is Full time source of Income then it is to be under Business & Profession and if such souce is part time source then under Income from other sources Rajiv Bansal CA CWA

1 Like

Soumitra Basu (Consultant) (2633 Points)
Replied 13 March 2010

As per CBDT Circular the income of the LIC agent is Income from other source. Though the circular was speaking of commission upto Rs.60000, yet the head under which this income has to be recognised is clear. There cannot be any difference in large commission and small commission. All the expenses relating to the business for earning commission is deductible.

ANIL KUMAR (CA.CS FINAL MBA B.COM-H) (91 Points)
Replied 30 July 2014

ALL ABOVE ARE SAYING CORRECT.

IN MY OPINION:-

1. IF THE CASE IS OF TAXABLE INCOME i.e. ABOVE NON TAXABLE-SLAB RATE, USE EXPENSES AND CLAIM ALL THE REFUND UNDER BUSINESS INCOME USING ITR-4 OR ITR4S.

2. IF THE CASE IS NON TAXABLE INCOME OR UNDER THE SLAB RATE THEN OTHER SOURCES IN USE ITR-2 WITHOUT EXPENSES AND CLAIM ALL REFUND.