How to file Income Tax Return for an Insurance Agent in 2025?

In recent years, the number of insurance agents in India has increased significantly. This growth has led to a rise in queries about income tax return filing and TDS deduction among insurance agents.

Here in this blog, we will explore the process of filing income tax returns for an insurance agent.

Which ITR to file for Insurance Commission Income?

• ITR-3: Applicable to individuals earning commission-based income from a business.
• ITR-4: This form applies to individuals making both a fixed salary and a passive income. They can file ITR 4 under the presumptive taxation scheme under Section 44AD.

Who will deduct TDS?

An entity is required to deduct TDS under section 194D when paying commission to an Indian resident for:

• Soliciting or procuring insurance business.
• Renewing, reviving, or continuing policies.

The Rate at which TDS is deducted

When is the TDS deduction not applicable for insurance commission income?

An entity shall not deduct TDS if:

• The commission earned is less than INR 15,000.
• If an agent submits Form 15G or 15H declaring no tax liability, TDS will not be deductible. This applies only if the total income is less than INR 2,50,000, the basic exemption limit, and he is a senior citizen.

How to Calculate Income Tax for an Insurance Agent?

How to File an Income Tax Return?

• Visit the Income Tax Portal: https://www.incometax.gov.in.
• Log In: Use your PAN and password.
• Select ITR-3 and share the details such as your PAN, address, and bank account information.
• Fill in business details, including income from commission, professional expenses, and other relevant information like TDS details.
• Verify the return using Aadhaar OTP, net banking, or sending a signed ITR-V to CPC, Bengaluru.