Income Tax - Highlights / Catch Notes
Income Tax - Disallowance of premium on Insurance Policy - Keyman...
Disallowance of premium on Insurance Policy - Keyman Insurance Policy - Once the assets are sold, the Keyman policy for the Firm becomes redundant. At the same time, a portion of the Premium cannot be disallowed as expenses, because, discontinuance of the policy has occurred due to sale of assets. Therefore, in our considered view, the disallowance being 1/3rd of the premium amount, is not sustainable. - HC