Income tax return
This query is : Resolved
03 August 2014
I never used to file returns. So I have below queries :
1. For AY 2014-15.....I have two incomes
(a) Income from salary (b) Income from Insurance Commission
Please advise - under which head commission income will come, which ITR to be filed, and how deduction can be taken.
2. AY 2012-13 - I did not file ITR. There is refund of Rs. 5000. Can I file now and claim refund
Please advise
1. For AY 2014-15.....I have two incomes
(a) Income from salary (b) Income from Insurance Commission
Please advise - under which head commission income will come, which ITR to be filed, and how deduction can be taken.
2. AY 2012-13 - I did not file ITR. There is refund of Rs. 5000. Can I file now and claim refund
Please advise
03 August 2014
1) Since you have Income from Insurance Commission which is taxable under the Profits and Gains of Business or Profession you need to file ITR4.
2) Return of AY 2012-13 can not be filed since the same is time barred. Last date of filing belated return was 31.03.2014.
If it is a refund case and you want to claim the refund the only way is to invoke section 119(2)(b) i.e., application for condonation of delay. Once your application is accepted you can file return.
2) Return of AY 2012-13 can not be filed since the same is time barred. Last date of filing belated return was 31.03.2014.
If it is a refund case and you want to claim the refund the only way is to invoke section 119(2)(b) i.e., application for condonation of delay. Once your application is accepted you can file return.
04 August 2014
yes above expert is correct.
04 August 2014
In My ITR 4, I took deduction for Inusrance Commission is 33.33% as someone told me that upto income Rs. 60,000 (where commission for fresh premium and renewal commission is not seperable, IT allows only 33.33% deduction which is upto only Rs. 20000.
Is it true or we can claim actual expenses as incurred evenif these are more than Rs. 20,000
Is it true or we can claim actual expenses as incurred evenif these are more than Rs. 20,000
31 July 2024
### **1. Income and ITR Filing for AY 2014-15**
#### **Income Heads:**
- **Income from Salary:** This should be reported under the head "Income from Salary."
- **Income from Insurance Commission:** This should be reported under the head "Profits and Gains of Business or Profession."
#### **Applicable ITR Form:**
- **ITR-1 (Sahaj):** This is generally used for individuals with income from salary, pension, or other sources, but it cannot be used if you have income from business or profession.
- **ITR-4:** This is applicable for individuals who have income from business or profession, including insurance commission. Since you have income from both salary and insurance commission, **ITR-4** is the appropriate form.
#### **Deductions for Insurance Commission:**
- **Expense Deduction:** As per the Income Tax Act, you can claim deductions for expenses incurred in earning the insurance commission. There is no fixed limit of ₹20,000 on the deduction for expenses; you can claim actual expenses incurred, subject to proper documentation.
- **33.33% Rule:** This rule applies to cases where the insurance commission includes both fresh and renewal premiums and you cannot segregate the expenses. If you cannot separate these, the deduction is restricted to 33.33% of the commission or ₹20,000, whichever is lower. However, if you can substantiate higher expenses, you can claim the actual expenses incurred.
### **2. Filing ITR for AY 2012-13**
#### **Filing Late Returns:**
- **Refund Claim:** You can file a belated return for AY 2012-13 under section 139(4) to claim the refund. The belated return can be filed within one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
- **Time Limit:** For AY 2012-13, the latest you can file the return is up to March 31, 2014, which is beyond the normal time limit for filing the return. If you haven't filed it yet, you might still be able to claim the refund by filing a belated return under section 139(4).
### **ITR-4 Deduction for Insurance Commission:**
- **Claiming Deductions:**
- **Actual Expenses:** You can claim actual expenses incurred for earning insurance commission if you have the documentation to support it.
- **33.33% Deduction:** The 33.33% limit applies if you cannot separate the commission into fresh and renewal premiums and the total expenses cannot be segregated.
### **Summary of Actions:**
1. **For AY 2014-15:**
- File **ITR-4** to report both salary and insurance commission income.
- Claim actual expenses incurred in earning the insurance commission, if you have appropriate documentation. If not separable, use the 33.33% rule.
2. **For AY 2012-13:**
- File a belated return under section 139(4) to claim the ₹5,000 refund, if you have not yet filed.
If you need further assistance or specific formats for claiming deductions or filing returns, please let me know!
#### **Income Heads:**
- **Income from Salary:** This should be reported under the head "Income from Salary."
- **Income from Insurance Commission:** This should be reported under the head "Profits and Gains of Business or Profession."
#### **Applicable ITR Form:**
- **ITR-1 (Sahaj):** This is generally used for individuals with income from salary, pension, or other sources, but it cannot be used if you have income from business or profession.
- **ITR-4:** This is applicable for individuals who have income from business or profession, including insurance commission. Since you have income from both salary and insurance commission, **ITR-4** is the appropriate form.
#### **Deductions for Insurance Commission:**
- **Expense Deduction:** As per the Income Tax Act, you can claim deductions for expenses incurred in earning the insurance commission. There is no fixed limit of ₹20,000 on the deduction for expenses; you can claim actual expenses incurred, subject to proper documentation.
- **33.33% Rule:** This rule applies to cases where the insurance commission includes both fresh and renewal premiums and you cannot segregate the expenses. If you cannot separate these, the deduction is restricted to 33.33% of the commission or ₹20,000, whichever is lower. However, if you can substantiate higher expenses, you can claim the actual expenses incurred.
### **2. Filing ITR for AY 2012-13**
#### **Filing Late Returns:**
- **Refund Claim:** You can file a belated return for AY 2012-13 under section 139(4) to claim the refund. The belated return can be filed within one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier.
- **Time Limit:** For AY 2012-13, the latest you can file the return is up to March 31, 2014, which is beyond the normal time limit for filing the return. If you haven't filed it yet, you might still be able to claim the refund by filing a belated return under section 139(4).
### **ITR-4 Deduction for Insurance Commission:**
- **Claiming Deductions:**
- **Actual Expenses:** You can claim actual expenses incurred for earning insurance commission if you have the documentation to support it.
- **33.33% Deduction:** The 33.33% limit applies if you cannot separate the commission into fresh and renewal premiums and the total expenses cannot be segregated.
### **Summary of Actions:**
1. **For AY 2014-15:**
- File **ITR-4** to report both salary and insurance commission income.
- Claim actual expenses incurred in earning the insurance commission, if you have appropriate documentation. If not separable, use the 33.33% rule.
2. **For AY 2012-13:**
- File a belated return under section 139(4) to claim the ₹5,000 refund, if you have not yet filed.
If you need further assistance or specific formats for claiming deductions or filing returns, please let me know!
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