Taxability of insurance commission

Adhoc deduction is available for insurance commission agents earning commission upto Rs. 60000 per annum. Above that they are supposed to maintain books of accounts if receipts exceed 120000/- or income is above taxable limit. You can keep proper account of expenses like travelling, conveyance, telephone expenses, entertainment and cleint relationship expenses etc., which are incurred as part of the insurance canvassing activity. Depreciation of vehicles, computers etc can also be claimed if these are used for the activity

I know that adhoc deduction is available, my question is whether is it available to agents of private companies other then LIC??

IT act does not discriminate between LIC and other private insurance companies in this regard

If the aggregate commission does not exceed Rs.60000, ad hoc deduction can be claimed as follows:

LIC agents

• 50% of I year commission, 15% of renewal commission (if separate figures for I year and renewal commission are not available, then 33%) subject to a maximum of Rs.20000
• No deduction for bonus commission

UTI/PO/Govt securities/notified mutual fund agents

50% of commission