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Salary and insurance commission which itr

manoj (student) (5205 Points)

14 November 2013

My client has salary income also insurance commission. TDS is deducted u/s 194 D PLZ tell me which ITR Will be applicable. Also tell me under which head insurance commission can be disclosed. Income from business or income from other source.

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18 Replies

Menka Asnani (Article Trainee) (49 Points)
Replied 14 November 2013

ITR-2 should be filed

manoj (student) (5205 Points)
Replied 14 November 2013

WHY ITR 2 UNDER WHICH SOURCE COMMISSION INCOME I SHOULD SHOWN

Ashok Katgi ( CA-Final) (62 Points)
Replied 14 November 2013

Under ' Income From Other Sources'

Menka Asnani (Article Trainee) (49 Points)
Replied 14 November 2013

Ashok is correct. You can show commission under the head "income from other sources"

CA Pallav Singhania (❤ Work Hard Party Harder ❤) (32322 Points)
Replied 15 November 2013

You can file ITR1..

ITR – 1 Form is to be used by an Individual having income from following sources:

Income from Salary/ Pension.
Income from One House Property (excluding cases where loss is brought forward from previous years)
Income from Other Sources (excluding Winning from Lottery and Income from Race Horses)

Income from insurance commission should be shown under 'Income from other source'...

Mihir (Wealth Manager) (5293 Points)
Replied 15 November 2013

Agreed with all. You may also avail deduction u/s 57.

manoj (student) (5205 Points)
Replied 15 November 2013

I M LITTLE BIT CONFUSED SAME QUESTION IN EXPERTS I PUT THEY ARE SAYING ITR 4 U GUYS ARE SAYING ITR 1..............

Menka Asnani (Article Trainee) (49 Points)
Replied 15 November 2013

Itr-1 is also correct and you should ask from experts why itr4 and not itr 1 or 2. Then, take your decision.

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 15 November 2013

You have to used ITR -4. I filed about 100 return of only insurance comm & salary income and for the same itr-4 is used & commision is shown under head B&P and if commission is less than 60000/- u can claim adhoc deduction

1 Like

CA Mohit Kumar (Employee) (32 Points)
Replied 15 November 2013

Yes saying of Rashmi Gandhi stands right. Because commission is earned only by way of Business and not using other sources. So ITR-4 is only to file.

manoj (student) (5205 Points)
Replied 15 November 2013

@ rashmi gandhi commission is 40000 then where in itr?

CA Nigam Sanghavi (CA) (22 Points)
Replied 15 November 2013

Itr 2 is prefered.. No need to file itr 4..

anil (CA IPCC) (49 Points)
Replied 16 November 2013

ITR4 require to be used for salary & commision income.

Mihir (Wealth Manager) (5293 Points)
Replied 16 November 2013

Where the earning of an individual is only from commission of insurance (full-time agent), then ITR-4 can be used. Here, the main source of income is salary (full-time), and side income is from selling insurance products. Besides, section 57 about ad hoc deduction is applicable for income from other sources. One cannot claim expenditure in business as well as ad hoc deduction at the same time.