Insurance agent commission?

Tax queries 2362 views 7 replies

DEAR sir, our client lic agent she recd. income 273297/- tds amt - 3825/- under 80c claim tution fees 13700, lic policy premium amt. 25000 /- (housing loan she husband exemtion claimed)

                                                 

                                                  TOTAL INCOME : 273297.00

                                       FEMALE DEDUCTION : 190000.00

                                                                                      -----------

(-)                                                                                83297.00

 

80C DEDUCTION :

TUTION FEES :                                                        13700.00

LIC PREMIUM :                                                         25000.00

MOBILE CHARGES :                                                7200. 00  (600 PM * 12)

POSTAGE AND STAMPS  :                                       1020.00  ( 85 PM *12)           

TRAVELLING EXPENSES :                                   17064 .00   (1422 pm * 1 YEAR)

PRINTING AND STATIONERY:                                 5316.00   (443 * PM *1 YEAR

GENERAL EXP. :                                                      13997. 00   (1166 PER MONTH * 1 YEAR )

                                                                                      --------------

BAL - :                                                                               NIL  

 

PLS.  SUGGESSTION MY CALCULATION CORRECT OR NOT ?

Replies (7)

dear sir your calculation is not correct as per income tax act

since under section 80c deduction  there is not allowed expenses which u claimed as

mobile expenses or

 travelling  expenses or

POSTAGE AND STAMPS  or

PRINTING AND STATIONERY:

GENERAL EXP. :  

in this case only tution fees and lic premium cover for claiming deduction u\s 80c

 

as per given data income calculation is

 

                                                   TOTAL INCOME :                                          273297

(-) 80C DEDUCTION :

TUTION FEES :                                                        13700.00

LIC PREMIUM :                                                         25000.00                   38700

                                                                                                                          ...............

total taxable income                                                                                    234597

                                                                                                                       ......................

tax calculation on income rs 234597                                      4460

tds deducted                                                                                3825

                                                                                                      .................

tax payable                                                                                  635

                                                                                                     ..................

this calculation is based on data u provided

there is no vifercation of commission income or any other income

 

SORRY SIR, TDS AMT. 30825/-

Comission income of LIC agents is PGBP, hence all expenses paid or incurred in connection to LIC business should be allowed in computing Net profit of the business.

 

LIC commission income .........273297 ( if tds is included in this amount then ok, otherwise TDS would get added in in this amount)

Bank Interest ..............................

-----------------------------------------------------

Total Income ................................................

 

Less Expenses claimed in PGBP

Bank Charges

Business Promotion

Telephone and Fax

Printing & Stationary

Travelling 

------------------------------------------

Net Profit .......................................

 

Less 

80C Deduction 

Tution Fees

(Check fees book, only "tution fees" heading is allowed for any recognized school, for her children only (max two )" 

LIC Premia

( check the sum assured is not less then 5 times of premium paid)

=============================================

Net Taxable income

( after such deductions ...net taxable income would come below taxable limit)

Tax there on .................................NIL

TDS 30825

Tax paid .NIL

Tax payable (Refundable) ..........................(30825)

lots of thanks

Hi

Mr.  U S SHARMA

Pls give me ur suggestion on your above comments. can we treat it is as business income and we claim theese expenses. and it is applicable only for lic agents or it is applicable to all (i.e. icici insurance agents or other )

what is PGBP?

Commission income is "Profit and Gains of Business and Profession"

Maximum of such expenses goes in 1st year premium and less in renewal premiums.

Hi

U S sharma

Pls chat with me i want to ask a query?


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