Out of Commission earned by the agents of above mentioned instituions an ad-hoc deduction is allowed in following manner
(A) If amount of commission exceeds 60,000 in a previous year
No ad-hoc deduction is allowed. The agent can claim expenses as per provisions of section 30 to 43B of the Act.
(B) If amount of commission does not exceed ‘ 60,000 in a previous year
(i) For agents of U.T.I., Post Office and Mutual Funds …… an ad-hoc deduction of 50% of such commission is allowed.
(ii) For agents of L.I.C ……..
(a) If separate figures of first year and renewal commission are available an ad-hoc deduction of 50% of first year’s commission + 15% of renewal commission subject to a maximum of ` 20,000 is allowed.
(b) If separate figures are not available—33 1/2 % of commission subject to maximum of ` 20,000 shall be allowed as ad-hoc deduction.
(c) Out of bonus commission no ad-hoc deduction is to be allowed.