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Lic agent commission

(Querist) 06 July 2013 This query is : Resolved 
Hello Sir
In F.Y 2012-13 one LIC Agent got LIC Commission near about 28 Lacs , I want to ask you it cover U/s 44AB ? how i calculate his commission limit either in turnover basis limit which is 1 Cr. or in Professional Fees limit fees which is 25 Lcas . I think there is no need to do audit U/S 44AB so Just I want to Confirm from experts so please suggest me that Audit is required or not ? and one more If audit is not require then i can file return us 44AD ?
ajay sethi (Expert) 07 July 2013
consult your chartered accountant or raise query in caclub india .com
CA. Brijesh Baranwal (Expert) 08 July 2013
Dear Pawan ji,

In your case, neither 44AB is applicable nor 44AD is applicable at present.

Since limit of business turnover is applicable in your case as per 44AB, and your turnover is below taxable limit,tax audit is not applicable.

As per the current provisions of 44AD, you are not eligible for filing return under this section as income from commission or brokerage is not eligible for the same.


For details you may refer Guidance Note issued by the ICAI. Some excerpts from the same for your help;

The following have been listed out as professions in section 44AA and notified there under (Notifications No. SO-17(E) dated 12.1.77, No. SO 2675
dated 25.9.1992 and No. SO 385(E), dated 4.5.2001):

(i) Accountancy
(ii) Architectural
(iii) Authorised Representative
(iv) Company Secretary
(v) Engineering
(vi) Film Artists/Actors, Cameraman, Director, Singer, Story-writer, etc.
(vii) Interior Decoration
(viii) Legal
(ix) Medical
(x) Technical Consultancy
(xi) Information Technology



The following activities have been held to be business :
(i) Advertising agent
(ii) Clearing, forwarding and shipping agents - CIT v. Jeevanlal
Lallubhai & Co. [1994] 206 ITR 548 (Bom).
(iii) Couriers
(iv) Insurance agent
(v) Nursing home
(vi) Stock and share broking and dealing in shares and securities - CIT
v. Lallubhai Nagardas & Sons [1993] 204 ITR 93 (Bom).
(vii) Travel agent.



PAWAN PARIKH (Querist) 09 July 2013
Thanks Sir .






















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