search icon
linner
back arrow Back

Is the employer employee policy premium is eligible as expense?

reply Share
03 Mar, 2023 by  Diganto Nath

As per the new income tax conditions Is the employer employee policy premium can be shown as expense at employer end. Or it has any limitation ? Please clarify in details.

like
0

1 Answer

Post
10 Mar, 2023
CEO, Insurance Samadhan

Dear Mr Nath

As per section 37 (1) , a business can do expenses to run a business . So premium paid under Employer Employee will be allowed as expense.

However , question remain whether this premium will be paid as perquisite or not . As firm is paying premium for the benefit of employee hence it will be treated as perquisite and maturity proceeds will be taxable .

Income tax rules identify keyman insurance and premium paid for term insurance is not added as perquisite.

So question need to be asked for treatment under perquisite and not whether it is allowed as expenses .

I invite views of others


Shailesh

Insurance Samadhan



like
0
icon-comment 0 Comments
icon-reply Reply

Tired of dealing with call centers!

Get a professional advisor for life!

LIFETIME FREE

Rs. 1799

or