insurance commission taxation

hi reena

there is circular for that 594/27.021991 , 648/30.03.1993, 677/28.01.1994 . it is applicable in respect of commission income earned by life insurance agents (LIC), UTI agents, post office/ government securities agents and agents of notified mutual funds. it is applicale only if total commission earned does not exceeds Rs.60000 and agent do not maintain detailed accounts for the exps incurred by him.The above scheme of adhoc deduction is not applicable if commission earned is greater than 60000 and agent can claim only admissible exps u/s 30 to 43B

Detailed deductions u can see from any of dt books in pgbp chapters.

As far as i know there is no adhoc deduction available for general insurance commission.

dear mehul what is the amount of adhoc deduction if lic commission does not exeeds rs.60000.

hi tarun

adhoc deduction for the agents of LIC

commisision               Deduction

first yr comm  -----------50% of commission

renewal comm ----------15% of commission

first yr comm. & renewal comm where seperate figures are not available. ---33.333% of first yr & renewal comm.

Provided aggregate deduction for above all shall not exceed Rs. 20000/-

There is no deduction available for the bonus commission