hi friends
please help me out
what is the procedure to calculate tax and adhoc deduction regarding insurance commission.
is there any difference in life and other insurance income?
thanks
reena jain
reena jain (CA ) (247 Points)
18 June 2010hi friends
please help me out
what is the procedure to calculate tax and adhoc deduction regarding insurance commission.
is there any difference in life and other insurance income?
thanks
reena jain
mehul kishnani
(student)
(264 Points)
Replied 19 June 2010
hi reena
there is circular for that 594/27.021991 , 648/30.03.1993, 677/28.01.1994 . it is applicable in respect of commission income earned by life insurance agents (LIC), UTI agents, post office/ government securities agents and agents of notified mutual funds. it is applicale only if total commission earned does not exceeds Rs.60000 and agent do not maintain detailed accounts for the exps incurred by him.The above scheme of adhoc deduction is not applicable if commission earned is greater than 60000 and agent can claim only admissible exps u/s 30 to 43B
Detailed deductions u can see from any of dt books in pgbp chapters.
As far as i know there is no adhoc deduction available for general insurance commission.
DT Fundas - Tarun rustagi
( Author)
(1150 Points)
Replied 19 June 2010
dear mehul what is the amount of adhoc deduction if lic commission does not exeeds rs.60000.
mehul kishnani
(student)
(264 Points)
Replied 19 June 2010
hi tarun
adhoc deduction for the agents of LIC
commisision Deduction
first yr comm -----------50% of commission
renewal comm ----------15% of commission
first yr comm. & renewal comm where seperate figures are not available. ---33.333% of first yr & renewal comm.
Provided aggregate deduction for above all shall not exceed Rs. 20000/-
There is no deduction available for the bonus commission
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