Lic commission head of income sources

Efiling 3157 views 6 replies

Rajendra Sewda

none

89 Points Joined May 2012

Respected Members,

If an individual is having other sources, house property, capital gain and salary income and also LIC commsaion.

My query -(1)LIC common.(say Rs.15000) to be shown in business head income or other sources.(2) If we show in business income then in PL i have to show net income 10000 in ITR(after deduxting adhoc deduction 33.33%) and in capital dr. Balance 15000 & surplus in PL cr. Side 15000 in BS part of ITR.

(3) if We treat in other sources income then can we claim adhoc deduction and show only net income of 10000 in other sources head in ITR.

Replies (6)

Guest

interest ,divident all this comes under income from

other sources and income from lic commission comes under income form business and profession

CA MANISH BINDAL

CHARTERED ACCOUNTANT

535 Points Joined July 2014

Adhoc Deduction benefit is available only to Insurance Agent. As per Circular 648 Dated 30.03.1993. Hence commission income received by Insurance Agent is taxable under the head Business & Profession and should not be shown under the head Income from other sources.