Question ID :
44928
Commission agent of insurance company_minimum profit
Dear all,
Presumptive income scheme is not applicable to commission agent . So what will be the minimum % of profit that should be shown and whether provisions of section 44AB/44AD applicable or not ??
Please throw some light on it ....
Posted by
SUDIP KUMAR MUKHOPADHYAY
on
Oct 25, 2025
Filed Under
DIRECT TAXES
Since presumptive income is not available, the commission agent must:
Maintain regular books of account under section 44AA, and
Show actual profit as per books.
There is no statutory minimum percentage of profit that must be shown — but the profit should be reasonable, consistent with business practices and justifiable with supporting evidence (like invoices, agreements, etc.).
In practical terms, commission income is taxed on net profit = commission receipts minus allowable business expenses.
Posted by
CA. SURAJ KUMAR CHOUDHARY on
Oct 26, 2025