Deduction of LIP
This query is : Resolved
02 October 2009
Hello,
I'm a PCC student and have following query:
If an employer(Private Ltd. Co.) pays Life Insurance premium of a specified employee, can that company claim insurance premium as its allowable expenditure??? Also, can that employee claim Insurance as a deduction u/s 80C??
I'm a PCC student and have following query:
If an employer(Private Ltd. Co.) pays Life Insurance premium of a specified employee, can that company claim insurance premium as its allowable expenditure??? Also, can that employee claim Insurance as a deduction u/s 80C??
02 October 2009
It is allowable expenditure for the employer but the employee can not get the benefit u/s. 80C as the LIP is not paid/borne by the employee.
03 October 2009
Dear Ratanji ,
under what section is it allowable exp for the company ?
Can Lip paid for employees be said to be incurred for the purpose of business u/s 37(1), is it debited to staff welfare?
or is claimed u/s 36 - Sec 36 no where mentions LIP
Thanks in advance , am just asking out of curiousity
under what section is it allowable exp for the company ?
Can Lip paid for employees be said to be incurred for the purpose of business u/s 37(1), is it debited to staff welfare?
or is claimed u/s 36 - Sec 36 no where mentions LIP
Thanks in advance , am just asking out of curiousity
03 October 2009
Key man insurance premium paid by the Company is allowable expesnses. Employee can not claim deduction U/s 80C for key man insurance premium.
03 October 2009
Okay!!! That means employee can avail benefit only if it is borne by himself!!
Thanks a lot to all of you!!!
Thanks a lot to all of you!!!
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