We deals in life insurance, car insurance, car insurance online, vehicle insurance, insurance policy, bike insurance, general insurance, online insurance, travel insurance, health insurance plans, health insurance, term insurance, medical insurance, Income Tax Return, Health Insurance, Car Insurance, Bike Insurance, GST, Return

Deduction U/s 57 for LIC Agents

Deduction U/s 57 for LIC AgentsDeduction U/s 57 of Income Tax Act, 1961 for Income earned by LIC agent as Income From Other Sources :-

The benefit of adhoc deduction to Insurance agents of the Life Insurance Corporation having total commission (including first year commission, renewal commission and bonus commission) of less than Rs. 60,000 for the year, and not maintaining detailed accounts for the expenses incurred by them, may be allowed as 
follows :  
(i)  where separate figures of first year and renewal commission are available, 50 per cent of first year commission and 15 percent of the renewal commission;
(ii)  where separate figures as above are not available, 100/3 per cent of the gross commission. In both the above cases, the adhoc deduction will be subject to a ceiling limit of Rs. 20,000.



The “gross commission” in (ii) above will include first year as well as renewal commission but will exclude bonus commission. The complete amount of bonus commission is taxable and will be taken into account for purpose of computing the total income, and no adhoc deduction will be allowed from this amount. The benefit of ad hoc deduction will not be available to agents who have earned total commission of more than Rs. 60,000 during the year. The admissibility of the expenditure claimed by such agents will be decided by the Assessing Officers as per the provisions of the Income-tax Act. —Circular No. 648, dated 30-3-1993 

Share:

0 comments:

Post a Comment

SAVE TAX SAVE MONEY With Insurance
Copyright © SAVE TAX SAVE MONEY | Insurance | Accounting | Taxation