CA.Swathi Jain (CA ) (155 Points)
15 March 2013The query is when an LIC Insurance agent dies, then will the LIC commission receivable by the deceased in the future years, be taxable in the hands of the nominee of the deceased agent. If yes, whether the same will be taxable under the head Profits and gains of business or profession or Income from other sources in the hands of the nominee?
CA Shree Jain
(Chartered Accountant)
(1572 Points)
Replied 15 March 2013
Income from Other Source........
CA.Swathi Jain
(CA )
(155 Points)
Replied 15 March 2013
Is it mentioned anywhere in the Act? Do u have any reference or case law to support your answer?
Mihir
(Wealth Manager)
(5293 Points)
Replied 15 March 2013
If the assessee is not involved in the activity of selling insurance policies (not his/her business), and yet is receiving commission by virtue of the agency contract of the insurance company with the deceased, then that income will come under the head income from other sources.
CA.Swathi Jain
(CA )
(155 Points)
Replied 15 March 2013
Thanks for the reply Ash and Mihir,
can u give me some reference to the Act or any other reference to law to support this view?
CAclubindia
