Insurance agency along with service

This query is : Open

Vipan Kumar (Querist)
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29 July 2011 Sir,

Can anyone tell me that whether a govt. employee who is on probation period, can do insurance business along with service on his own name? whether it make any difference if he is already doing insurance business and now joined as govt. employee?

Please clarify regarding both aspects i.e. from view of govt. employee and from view of income tax?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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29 July 2011 Income Tax is a "Broad Minded" tax. It does not have any undue restriction on taxpayers.
It only requires that the income of a person should be covered in the five heads of income. Its fifth head covers all the residual income which could not be covered by any other head.

Similarly it does not differentiate good man or bad man. Even smugglers can file their return and can pay tax. As such it accepts all kinds of income.
Being a Govt. Employee, restrictions are
there in carrying on any business or agency. Chances of facing problems arises when some of your office mates complains about your business.
However, in case of agency taken prior to joining Govt Service, only renewal premiums can be deposited. New business can not be solicited.