ANAND KUMAR (ADVOCATE) 29 August 2011
WE ALL KNOW THAT SECTION 44AD APPLIES TO ANY BUSINESS (IN CASE OF RESIDENT INDIVIDUALS, HUFS OR FIRMS)WHERE THE TOTAL TURNOVER OR GROSS RECEIPTS DO NOT EXCEED RS.60 LAKHS DURING A YEAR.
NOW MY QUESTION IS WHETHER AN INDIVIDUAL CARRYING ON THE ACTIVITY OF LIC AGENCY BUSINESS IS ELIGIBLE TO TAKE THE BENEFIT OF SECTION 44AD ON HIS COMMISSION EARNED .
Sanjeev (Lawyer) 29 August 2011
Sec 44AD apply to assesses engaged in the Business of Civil Construction LIC business is not covered by this section.
ANAND KUMAR (ADVOCATE) 30 August 2011
Thank you Mr. Sanjeev for your valuable reply.
Mr. Sanjeev I have gone through the section in brief, but this is clear that Section 44AD applies to other businesses as well besides civil construction. Such businesses may be any trade ( Whether retail or wholesale),the only exclusion is for the business of plying ,hiring or leasing goods carriages covered u/s 44AE.
In fact the word "eligible business" have been specified in the section. Now my querry is whether LIC agency business comes within the category of eligible business.
Sanjeev (Lawyer) 30 August 2011
No this apply to Construction business only
Sadashiv Rupchand Gaikwad (Partner) 10 September 2011
LIC insurance commission income is not covered as Profession.It is non profession Income, you may show net income more than 8%.But it is better to prepare Books of Accounts. You may use 4S for Income tax Refund.
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