LIC Commission

 ITR 4, and its income from Business and Profession, and claim all the expenses incurred in earning the commission while filing the return. so make a Income and expense statement. and computer income tax on Net profit after considering sec 80 benefits and TDS already deducted

Dear Nitesh,

There is no hard & fast rule & it can come under either of the heads depending on whether it is a whole sole activity which the employee is doing or is just an additional source of earning income.....

Provision of taxing it will be same under both the heads..........

Its depend upon the you, whether u r considering as main income then consider it under Business or Profession head and claim and related expenses - ITR 4

otherwise under Income from Other sources - ITR - 1

Hi everyone,

The commission earned by an LIC agent comes under the head 'Income from other sources'. I had done it for one of our clients. An ad hoc deduction u/s 57 can be claimed by the assessee for such income & no other expenditure & deductions can be claimed for such income. Check out the conditions for availibility of ad hoc deduction u/s 57.

https://www.incometaxindiapr.gov.in/incometaxindiacr/contents/DTL2008/sec_057.htm

Check out this link for further details.

ITR - 2 can be filed in this case.

Thanx everybody...............

itr 4 would be filed..for this and if commsion is below limit it can be filed on assumed income basis

LIC is considered as business income only if it is the main income of the assessee...

bt if it is not the main income then considered under other sources...

expenses are still allowed as deduction

main income can be determined by comparing the income with total income

i hv allready filed a return for 4 to 5 yrs of one of my client who is a lic agent  under Business & profession.
 it can also come under other sources if it is not his main business. If you r considering it as b & p income can be computed on assumed income basis if it is below the limit .

If the gross recpt  exceeds 60000 u hv to prepare Balance sheet. An LIC Agent whose gross receipts of commission exceeds Rs.60,000/- can not claim any expenditure as deduction unless he maintains books of account.  Please refer CBDT circular published in 201 ITR.

pls. tell me, which ITR form use for income from commission only and time for TDS refund from IT dept.

Hi everybody:

For Asst year 2011-12 there is an interesting provision U/s 44AD - Presumptive Tax. The Section covers "ANY BUSINESS" other than plying of vehicles. 

LIC Commission has been held as "Income from Business"  (as opposed to Income from profession). Since, this business is not excluded by the above section I feel it is advisable to file ITR-4 (ITR-4S) and show gross receipts of commission and offer 8% thereof for Taxable Income. Ofcourse no deductions (Other than Salary of partners in case of a P Firm).

The various clarifications / circulars bt IT Dept (CBDT) were applicable before this ammended/new section vroughtin for Asst year 2011-12.

Any Comments?  WELCOME.

Chenchumoham .a.