LIC Commission Agent

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2010 Hi all,

Whats is the general Deduction for the Commission agent,

Under Which head we have to file this Income.

Thanks In advance

CA Sanat Pyne

CA Sanat Pyne (Expert)
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28 July 2010 You can get deduction u/s 80C/80D/80G.

LIC commission is a business activity and expenses incurred to get the income may be claimed as duduction by preparing the accounts of the LIC agency business. expenses of conveyance, distribution of articles, payment made to collectors, office expenses etc. etc. which the assessee might have spent. it can be decided on the facts of the case

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2010 What about circular 594 dated may 15 1991

In that it says some ad hoc deduction.

Please clarify the same

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CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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28 July 2010 For LIC Commission, the applicable Circular is Circular 648 dt. 30-03-1993. The ad hoc deduction is available only if the gross receipt from such commission doesnot exceed Rs. 60,000/-

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2010 Thsnks pradeep Whats the provision because my commission doesnt exceed 60000

please help me out

CA. Pradeep Nayak

CA. Pradeep Nayak (Expert)
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28 July 2010 Where separate books are not maintained and the gross commission earned is less than Rs. 60,000/- adhoc deduction will be as follows :

(i) where separate figures of first year and renewal commission are available, 50 per cent of first year commission and 15 per cent of the renewal commission;

(ii) where separate figures as above are not available 33.33 per cent of the gross commission.

Deduction has to be claimed based on this Circular. There is no separate income tax provision for the same.

Querist : Anonymous

Querist : Anonymous (Querist)

28 July 2010 Thanks Pradeep