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Ask The Tax Expert

Filing Correct ITR Form for LIC Agents

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.

                              

Warm Regards,

Expert @ TaxYogi

Published Jul 20 2010


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Comments

Comments

 

RAGAHV said:

ONE OF THE RIDICULOUS ANSWER I GOT FROM THERE. A PERSON SHOULD FILE ONE RETURN OF A SINGLE TYPE. BUT YOU R SUGGESTING TWO ITR IN ONE YEAR.

HAHAHAHAHAHAHAHAHA

August 3, 2010 3:17 AM
 

Ravi said:

I am surprised that you are telling that tow ITR (1 & 4) Should be filed for Salary and Agents Commission. I think its not like that. Can anyone clarify this? Also please clarify those who having Employment income and agents commission of below Rs.50,000/- whether they can get any exemption on fresh commission and renewal commission.

May 19, 2011 10:51 AM
 

SATISH S. BIRADAR said:

Part B- TI of ITR 4 has provision for including salary income. Hence no need of filing two returns. Only ITR 4 will be enough.

May 29, 2011 10:05 PM
 

ramesh said:

please clarify any exemption for lic commision if yes how

June 23, 2011 12:54 AM
 

umesh said:

Hi am Umesh, I am salaried person & I am doing additional business of LIC. Which form to be filled for Income tax return. So that returning of TDS?

July 2, 2011 9:29 AM
 

thevadath santha said:

I am a central govt. pensioner now doing insurance business with Tata-Aig. Company deducted TDS from my commission.  My total income income is below taxable limit.  Which return I have to file to get the refund of tax deducted by TATA-AIG

July 19, 2011 8:49 PM
 

Pushpa k gupta said:

Independent LIC agent should file ITR 4S

July 25, 2011 2:58 AM
 

RAMESH said:

I'm working in a private company drawing monthly salary.  Earlier and for the last one decade I'm woeking as an LIC Agent.  Kindly tell me how to show my commission income in incone tax returns as Income from other source. I was told that expenses for procuring new business and servicing for existing policyholders, certain percetage is allowed in in my commission earned. Kindly advise.

July 26, 2011 9:25 AM
 

raghuveera sampath said:

thank you very much for your info..

July 27, 2011 1:44 PM
 

Upender said:

Hi, I have check lot of communication where going on for correct ITR form for LIC agent. I am also a LIC agent and working in a Pvt. Company. My salary is more than my commission. I am also not sure about the form to use for submission of tax. Please some guide on it. Last year i have used ITR-2 for the tax submission. I have received the amount of TDS deduct from LIC.

Is it OK to use ITR-2?

Please some one check and inform for the same.

Thanks in advance for the help.

July 28, 2011 2:07 PM
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