Commission Income

This query is : Resolved

sri (Querist)
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25 January 2011 1)can we treat commission received by insurance agent income as business income or professional income?
2)IS there any estimated income Scheme section like 44AF for AY.2010-11 and 44AD for Ay 2011-12 ?

Guest

Guest (Expert)

25 January 2011 Yes, it is business income only. there is estimated income scheme for small agent having insurance commission income less than 60,000/-

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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25 January 2011 If the insurance agent is an IRDA examination passed person, will you differ from the above observation.

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sri

sri (Querist)
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26 January 2011 dear sir all the insurance agents appointed by insurance co. are qualified by IRDA. So is it necessary to treat those commission income as professional income? and a small doubt that as per tax audit commission agents whose turnover over Rs.40,00,000/- have to audit u/s 44AA?
and An insurance agent earn a commission of 8,00,000/- can i show the income under estimated income scheme if so under what section? and a commission received by pACL agents is business income?

Guest

Guest (Expert)

27 January 2011 Commission earned above 40,00,000/- will be subject to audit and an insurance agent can not file estimated return of income if his commission income is of 8.00 lacs.