Presumptive taxation

[jatin Gandhi]

Hello,

I am a insurance agent and I have received insurance commission of Rs.135000/- in current financial year. Can I show income at the rate of 8 percent on Rs.135000/- as presumptive income.

[CAGOPALJI AGRAWAL]

You cannot claim the presumptive rate of 8 percent as you are not an eligible assessee u/s 44AD. You can claim your genuine expenses through profit & loss account.

AI Summary

Presumptive taxation not available to insurance agents; declare commission income with actual expenses via profit and loss. The agent cannot apply the presumptive taxation scheme under section 44AD to insurance commission receipts; the agent must compute taxable income by maintaining accounts and claiming genuine expenses through a profit and loss account.