Which ITR is filed for commission income?

ITR – 3
Insurance agents earning commission are required to file their returns using ITR – 3. It is essential to note that an entity whose income is by way of commission or brokerage cannot adopt the presumptive taxation scheme of Section 44AD.

How is commission income taxed?

Commissions are assessable income and need to be included in the ascertainment of one’s taxable income at year end. As the commission forms part of your remuneration your employer is obligated to withhold PAYG. The whole of the commission is included in assessable income, along with your base salary.

Under which head commission income is taxable?

Income from Other Sources
✅Under which head commission income is taxable? The Commission income falls under the residuary head of income, i.e. Income from Other Sources (IFOS). However, if a person is engaged in the business concerned with the commission business, then it would come under the ‘Income from commission business’.

Can commission income be treated as business income?

“Commission income falls under the residuary head of income i.e. Income from Other Sources (IFOS). However, if a person is engaged in the commission business, then the income from commission business shall be offered to tax under the head “Income from business and profession” and not under IFOS,” says Dr.

How to file income tax return for LIC agent?

This video is about how to file Income tax return for LIC agent and other commission agents. It is a complete step by step process on e-filling in ITR- 1 for… This video is about how to file Income tax return for LIC agent and other commission agents. It is a complete step by step process on e-filling in ITR- 1 for…

When does income from LIC Commision become taxable?

07 May 2010 For an LIC Agent, LIC commsission will be taxable under the Income from Profits from Business or Profession (PGBP). In case, the Income exceeds the Tax Audit limit, then it is compulsory to prepare B/S & P/L and get accounts Audit.

Is there any deduction you / S 57 for LIC agents?

Is there any deduction u/s 57 of Income Tax Act, 1961 for Income earned by LIC agent as income from other sources. If, yes, please send me the reference/circular/caselaw. (ii) where separate figures as above are not available, 331/3 per cent of the gross commission.

What kind of Commission does LIC pay to agents?

These commission values are expenses that LIC pays to their network of agents and agencies to get policies sold. The LIC commissions can vary from 2% to almost 35% depending upon the policy and tenure. LIC agents commission in 2021 are out and you can see the percentages of commission against each policy (with table number) in above section.