LIC agent is a person who knows the details about the policies and creates public awareness about the benefits of the policies. He is given a commission by the LIC when he catches up the policies. The agent must be a licensed person from the LIC. To obtain the license he should have passed the LIC agent exams that is conducted and should have attended training for 100 hours. To obtain more policies he should be a good communicator and should be a person who meets many people and attracts them through their communication skills.
Do the LIC agents have to pay income tax?
It is in the mind of many people whether the LIC agent should pay the income tax or “is the income tax applicable for the LIC agent?” To answer this question first we have to know that the commission that a LIC agent gets is according to the number policies he have got. So his income differs and there is also difference in the income between the LIC agents. The income tax generally depends on the money that is obtained by the LIC agent as a commission.
What should be done to get a tax exception?
In order to get an exception in tax, the LIC agents can file an ITR – 4 and a HRA. This means there will be a business expenses deduction and that can be claimed for. When you file this you can get either full or part amount tax exception.
Generally, the LIC agents will have less commission only and that will be enough for the day to day expenses and so it is intelligent to get a tax exception by filling up the form indicating the reason or the purpose for claiming the tax exception pay!