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TMI BlogUnderstanding Insurance Premium Deductions: Clause 30 of the Income Tax Bill, 2025 vs. Section 36 of Income-tax Act, 1961X X X X Extracts X X X X X X X X Extracts X X X X ..... available under the Income Tax framework, specifically concerning premiums paid for insurance purposes. This clause is situated within the broader context of the Bill, which aims to update and streamline various aspects of tax legislation to reflect contemporary economic realities and policy objectives. The significance of Clause 30 lies in its potential impact on businesses and cooperative societ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s used in business or profession. The provision emphasizes the importance of safeguarding business assets, thus promoting stability and continuity in operations. Sub-Clause (b): Insurance on Life of Cattle Federal milk cooperative societies can deduct premiums paid to insure the life of cattle owned by members of primary societies engaged in milk supply. This provision recognizes the critical ro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... larly in the dairy sector, stand to benefit from enhanced financial protection for their members. Employers will be encouraged to invest in employee health insurance, contributing to a healthier workforce. Comparative Analysis with Section 36 of the Income Tax Act, 1961 Sub-Clause (a) vs. Section 36(1)(i) Both provisions allow deductions for premiums paid for insurance against damage or destruc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nomic practices and policy objectives, it offers a balanced approach to risk management and financial planning for businesses and cooperative societies. Future developments may see further refinements to enhance clarity and effectiveness, particularly in response to evolving economic conditions and stakeholder feedback.
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Clause 30 Deduction on certain premium. X X X X Extracts X X X X X X X X Extracts X X X X
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