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Please Guide..

Devendra (Chartered Accountant) (4775 Points)

29 March 2011

I want to file the return for my friend. He is a General Insurance Commission Agent. Can I show the Income under the head Income from Other Sources and claim expenses u/s 57?

Regards,
Devendra K

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6 Replies

(Guest)

If the amount of commission is small ,then u can show in u/s57 & claim expenses.

but the amount is bigger then better to show as business income & claim deduction of expenses.

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Devendra (Chartered Accountant) (4775 Points)
Replied 29 March 2011

Commission earned is around Rs. 3 Lakhs.

(Guest)

then show it as business income & claim resonable deduction on that. eg. 25% of commission earned.

bcoz many times agents give rebate to their client. then also claim travelling & printing & staionary expanses also.

(Guest)

also here u need not to give his b/s & p&l a/c.

so just write it as gross receipts in ITR 4 & less expenses from it.

there is no need to give details of all expenses in ITR.

Devendra (Chartered Accountant) (4775 Points)
Replied 29 March 2011

Can I show only a Profit and Loss Account?

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(Guest)

NO NEED TO SHOW BETTER TO SHOW IN ONLY GROSS RECEIPTS & GROSS EXPENSES.

IF ALL EXPENSES VOUCHER IS IN PROPER RECORD & YOU HAVE ALL INFORMATION OF ALL ASSETS & EXPENSES THEN YOU CAN PREPARE B/A & P/L A/C OTHER WISE NO NEED.