Hi I am Kruthika. I am preparing for CA exam. Can an insurance agent adopt the presumptive taxation scheme of section 44AD?
0
0
Answer Now
Comment
Report
3
Answers
Hi,
A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44D. Insurance agents earn income by way of commission and, hence, they cannot adopt the presumptive taxation scheme of section 44D.
Important Note – Preparing for CA Final?
CAKART provides Indias top faculty each subject video classes and lectures – online & in Pen Drive/ DVD – at very cost effective rates. Get video classes from CAKART.in. Quality is much better than local tuition, so results are much better.
Watch Sample Video Now by clicking on the link(s) below –
For any questions Request A Call Back
Business of plying, hiring or leasing goods carriages referred to in sections 44AE.
A person who is carrying on any agency business.
A person who is earning income in the nature of commission or brokerage
The scheme of section 44D is designed to give relief to small taxpayers engaged in any business, except the following businesses:
Business of plying, hiring or leasing goods carriages referred to in sections 44AE.
A person who is carrying on any agency business.
A person who is earning income in the nature of commission or brokerage
Apart from above discussed businesses, a person carrying on profession as referred to in section 44AA(1) is not eligible for presumptive taxation scheme.
A person who is earning income in the nature of commission or brokerage cannot adopt the presumptive taxation scheme of section 44D. Insurance agents earn income by way of commission and, hence, they cannot adopt the presumptive taxation scheme of section 44D.