Lakshminarayanan (LIC Agent) 13 July 2009
I work in LIC as an individual agent. My brother & my wife works for me and takes care of the servicing aspects & marketing aspects. They are not part of LIC (as agents). Presently I provide them salaries for their work; but we would like to execute a partnership deed between us & share the profits / losses properly. Is it possible for us to get into a partnership deed? Please let us know.
A V Vishal (Advocate) 13 July 2009
Lakshmi Narayana
Practically it is not advisable to open a partnership firm with your kin, since the agency as an insurance agent is with the individual and not with the firm. Further, the Tax authorities may disallow since the income( Commission) earned is due to your personal marketing skills, the role of your wife and brother is nil, they only assist you, hence the entire income can be taxed in your hands. However, I advise you to continue them as employees and pay salary, which should be reasonable by any means.
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