Commission received by LIC agents or other agents of Life Insurance companies ,can claim exemption on the First year commission to the extent of 50% provide the total commsion is with in 60,000/=. In your case the total commission earned is Rs. 75000/= , so that it is not applicable to you. But you can prepare a I / E a/c and show your expenses for earning the commission and the net income can be taken as your Income.

In the above case the commission amount is 75000/- as such the said circular is not applicable and the expenses incurred actually may be claimed out of the commission earned from the insurance business.