Mr. Y is insurance agent of Iffcom Tokio General Insurance Co. Mr. Y got license from ITGC to collect money and generate policy for which Mr. Y gets commission. For that Mr. Y need to deposits amount with ITGC in cash and premium paid will be deducted from such cash balance.
- Cash deposit by Mr. Y does not exceeds Rs. 20000, however agreegate of deposit during the year is around Rs. 600000.
- If customer goes to company for payment of insurance then also it will reflect in CD account of Mr. Y
Do such transactions covers under exemption list of Rule 6DD? Its neither income or deposit of Mr. Y, Mr. Y is just work as an interemediataries. Do Mr. Y need to maintain separate accounting for all such transactions in his books of accounts?
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