LIC agents commission

Business & Profession - tax audit if gross receipt exceeds Rs. 15 lacs in a year.

LIC Commission is a Business Income. In this case, it is subject to Tax audit u/s 44AB.
 

Dear Amiya, insurance agent income is a business income, after introduce Sec. 44AD its comes under this section, so u can filed the return in this sec then your income is 1800000*8%=144000,  if u filed return under this sec u r not required to TAX AUDIT and Maint. Books of A/c.

but as per my opp. its a disputable matter coz agent 70-80% comm. is a part of income, so wait for other reply frm mambers in this matter.

Regard:_Bhanwar

Originally posted by : J.Alamelu lakshmi
	LIC Commission is a Business Income. In this case, it is subject to Tax audit u/s 44AB.

*not Tax audit in this case

Hai Friends

In my point of veiw This will come under business income and it is not come under the tax audit purpose but you have to maintain books of accounts acc., to sec.44AA of IT Act if commission agent exceeds his income more than 60,00 in the previous year

Thank You

Insurance commission is a business income not a professional income, and in your case sec 44AD is applicable, show the profit 8% or more of the total turnover, further if you opt the sec 44AD then no need to maintain book and accounts and tax audit also not applicable.
 

hi everyone,

i want to know the income of lic agents is cover under "business" or under "profession"..

i want to file return gross receipt from lic commission is near about 7 lac.

plz rpl me as soon as possible..

hello Friends,

this question is arising in mind of avery insurace agent whose earning is not even 5-10 lakhs p.a., most of them filing returns not because they understand the tax filing is compusory to them but just to get there TDS amount Refund from income tax dept. 

Few Experties saying it is not covered u/s 44AD as it is a commission income , few saying it is covered u/s 44AD as a business income. few are saying is not covered u/s 44ADA also as it is a commission income not prefessional income.

onother question is  in my mind though it is a commission income, why TDS is deductable as per section 194D and not as per 194H,? 

another issue is if a person not maintaing books of accounts, AO may impose penalty for non maintaining books of accounts and records of expenses and cash book etc.

i agree it's a disputable matter coz agent 70-80% (not practicaly) comm.is a part of income, but can i file returns u/s 44AD with say more around 50-70% of total earning form Insurance Business ?? so i will not bother about maintaining books and records.

it is just a query in mind and not a debate, very thankful for your valuable time and views