Question: Hi, I am a LIC agent earning commission of Rs 50,000/- as annual income. Which ITR form should I use for tax filing? Thanks
Answer: There are 3 aspects here -
i) Working independently as Insurance agent; and
ii) Working under an Insurance company and earning salary and commission on sale of policies.
iii) Working as an employee (receiving salary income) and having separate agency commission.
In (i), it is treated as ‘business income’. ITR-4 is to be used; the assessee may/may not require to fill P&L/Balance Sheet details in ITR-4. In case he is not maintaining books of account – he may fill in item 51 of Part-A P&L in ITR-4.
In (ii), the assessee needs to file ITR-1 – for income from salary and commission.
In (iii), the assessee needs to file ITR-1 and ITR-4.
Expert @ TaxYogi