Dear Mr.Vijay Kumar, There are specific ad hoc deductions are available under income tax act for LIC agents.
If the commission income is less than Rs. 60, 000/- and it constitutes FYC and RC, 50% of FY commission and 15% of renewal commision shall be allowed as deduction. Where no break up available, ad hoc 33.33% shall be allowed as deduction and balance shall be considered as Taxable income and normal rate of tax shall be applied. and all above deductions are subject to maximum of Rs.20,000/- If the the commission income exceeds Rs.60,000/- normal business expenses incurred shall be allowed as deduction and balance will be taxable. Please refer circular No.594/15.05.1991 and 648/30.051993 and 677/28.01.1994 and CBDT guidelines. Regards, CA YKondal Reddy On Thu, Apr 2, 2009 at 10:35 PM, Vijay Kumar <[email protected]> wrote: > Hi All, > > An Insurance agents gets a commission for selling the insurance product and > earns a income of Rs. 150000, so what will be the tax rate applied on such > cases. > > The insurance agent also owns a proprietory ship firm and also is an > salaried employee in a Pvt Ltd Firm. > > > Best Regards > > > > Vijaykumar > > Accounts Associate > > *Integration **Infotech **India Pvt Ltd.* > > Tell: 020-4018-7000 > > Fax: 020-4018-7010 > > Email: [email protected] > > Visit us: www.i3intl.com > > > > -- CA Y Kondal Reddy --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Skorydov MyTaxAssistant Member Group" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/SkorydovMyTaxAssistant?hl=en -~----------~----~----~----~------~----~------~--~---
