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Mihir Tanna |831 Answers |Ask -Follow

Tax Expert - Answered on Oct 19, 2023

Mihir Ashok Tanna, who works with a well-known chartered accountancy firm in Mumbai, has more than 15 years of experience in direct taxation.
He handles various kinds of matters related to direct tax such as PAN/ TAN application; compliance including ITR, TDS return filing; issuance/ filing of statutory forms like Form 15CB, Form 61A, etc; application u/s 10(46); application for condonation of delay; application for lower/ nil TDS certificate; transfer pricing and study report; advisory/ opinion on direct tax matters; handling various income-tax notices; compounding application on show cause for TDS default; verification of books for TDS/ TCS/ equalisation levy compliance; application for pending income-tax demand and refund; charitable trust taxation and compliance; income-tax scrutiny and CIT(A) for all types of taxpayers including individuals, firms, LLPs, corporates, trusts, non-resident individuals and companies.
He regularly represents clients before the income tax authorities including the commissioner of income tax (appeal).... more

Question by Anand on Jul 20, 2023Hindi

Besides salary income, I have an additional income of just less than Rs.2 lakhs as receipts from insurance policy as commission, on which tax has been deducted at source by the insurance co. I do not maintain any books of accounts or any audit has been done. Should I enter this amount in the Credit section and Business expenses in the Debit section or in the "No Account Cases " section ( wherein no books are maintained ) of the Schedule on Profit and Loss in ITR3. Please clarify

Ans: If income from business and profession exceeds 1.2 lakhs, person required to maintain books of account. In case person is not required to maintain books, no account cases option can be opted

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Question by Dinesh - Sep 06, 2022Hindi

I bought an insurance policy with single premium of Rs 97048 and tenure of 9 years. The sum assured was Rs 130,000. Gross maturity proceeds were Rs 11,1348. There were two survival benefits of Rs 19,500 each at 3 year intervals. In my layman’s understanding, my income from this policy is Rs 11,1348 minus single premium of Rs 9,7048, that is, Rs 14,300. But LIC is deducting TDS by adding the two survival benefits to this, that is, Rs 14,300 plus Rs 19,500 plus Rs 19,500 amounting to Rs 53,300. My question is, should I report Rs 14,300 or Rs 53,300 as my income from this policy while filling my ITR. AIS shows Rs 53,300.

Ans: Money received against insurance policy (which covers life) is fully taxable, wherein the premium is more than 10% (in case policy issued after 1st April 2012 or 20% (any other case) of the sum assured.

As premium paid by you is more than specified limit of sum insured, provisions related to exemption of amount received and deduction of premium paid is not available.

Accordingly, you have to pay tax on entire income i.e. survival benefit and amount received above amount paid by you i.e. Rs 53,300.

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