Postal & Insurance Agents :What Deductions Allowed ?


The persons who are insurance agent or postal agents who receives commission for selling various kinds of investments and insurance products of  insurance companies and postal department. One reader Vasantha , Trichy  has asked  “I am a mutual fund broker, LIC agent & Postal agent. I am getting income by way of commission for my agentship. Please guide me under which head I should show my commission income in itr-4. What is the maximum expenditure can I deduct from my gross income.

The readers were informed that even though the income from insurance commission falls under the head “Income from business ” , so the return has to be filed is ITR-4 , but it is also a fact that the insurance agents’ job does not fall under the category of “professionals”  therefore they can avail the benefit of presumptive exemption scheme u/s 44AD of the Income tax Act only upto Assessment Year 2012-13 .However , from Asst Yr 2012-13 , the agency commission and income earned as  a broker or agent is out of purview of section 44AD . As such this avenue for insurance agent to avail of the benefit of section 44AD from asst year 2013-14 onward is no more there.

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