Income tax return

ITR 1261 views 12 replies

What treatment should be given to the insurance commission earned by an agent of National Insurance co. Ltd.?

Whelther it should chargeable under the head PGBP, OR Income from other sources?

Replies (12)

it is taxable under head Business or profession

IT SHOULD BE SHOWN AS BUSINESS INCOME. YOU CAN FILE ITR - 4S.


REGARDS,

DEVENDRA

IT SHOULD BE TAXABLE UNDER PGBP

HEADS OF INCOME

In the Income Tax any income earned by a person is broadly categorised into five heads of income. Any income earned to be taxed must come under any of the five heads of income. The five heads of income are:

1. Income under Head Salaries: This head taxes the income earned by an individual as salary from any firm or organisation.

2. Income from House Property: This head taxes rental income received by any person from way of renting of any immoveable property.

3. Profits and Gains of Business or Profession: This head of income broadly covers income earned by a person as a result of some business or professional set-up by him.

4. Capital Gains: This head of income taxes the income earned on sale of any investment in form of gold, precious ornaments, shares, etc or immoveable property.

5. Income from other Sources: This head of income covers any income which is not chargeable to tax under any of the above heads of income. Any income including gambling or profit/loss on running of race horses, camels, interest income , etc are chargeable to tax under this head of income.

 

LIC COMMISSION COMES UNDER Profits and Gains of Business or Profession HENCE ITR 4 IS APPLICABLE

yes agree with all it will be chargable under PGBP

 It will be chargable under PGBP.

Originally posted by : valji

it is taxable under head Business or profession

Originally posted by : SAN...

 It will be chargable under PGBP.

Can insurance agent file his return in ITR-4S if he doesn't maintain his books of accounts?

@ Jaganathan - Income from house property - This head taxes rental income received by any person from way of renting of HOUSE property owned or deemed to be owned by him .

Capital Gains- This head of income taxes the GAIN earned on TRANSFER of any investment in form of gold, precious ornaments, shares, etc or immoveable property.

 

It will come under ITR 4.. and more over he can submit 16A to claim TDS refund.

Originally posted by : valji

it is taxable under head Business or profession

as it is his regular day to day work.

If, it was not the agent then he would have to disclose the such income under the IFOS.

HOW CAN ITR CAN BE RECTIFIED WHICH WAS EARLIER RECTIFIED U/S 154......?  


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