TMI BlogEmployee Employer Insurance- Income Tax treatmentX X X X Extracts X X X X X X X X Extracts X X X X ..... One of my client company has paid for insurance policy in the name of directors i.e. employees as a retention tool. Terms and conditions are as follows: - Employer is the proposer and life to be assured is the employee. Employer is the policy owner and pays the premium. -Employer has fixed condition and period by when the policy will be assigned in favor of employee. - Is the premium ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid (annual ₹ 1 lakh) eligible as revenue expenditure under section 37 to the company without any dispute?? now after 4 years of payment by company (Total Payment -Rs.4,00,000 /-), policy got assigned to employee i.e. director in his personal capacity. at that time, surrender value was ₹ 1,75,000 /-. what should be the treatment here in company's hand and in employee's ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd? After that employee pays balance 6 premiums i.e. total ₹ 6,00,000 /- and gets ₹ 12,50,000 /- as maturity amount. Which amount should be taxable in the hands of employee? total 12,50,000 /- or ₹ 10,75,000 (i.e. net or surrender value at the time of assignment). Thanks - Reply By DR.MARIAPPAN GOVINDARAJAN - The Reply = The premium paid may be treated as revenue expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure since it relates to the business. - Employee Employer Insurance- Income Tax treatment - Query Started By: - CABIJENDERKUMAR BANSAL Dated:- 6-7-2018 Income Tax - Got 1 Reply - Income Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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