Insurance Premium

This query is : Resolved

Jitendra Mehta (Querist)
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04 December 2008 The insurance premium paid by Employer on behalf of an endowment policy taken on the life of the Employee, is subject to tax in the hands of the employee or is subject to FBT. If subject to FBT, under what head and what % of this will be the value for calculation of FBT.

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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04 December 2008 If this is for all employees working in your org. then FBT is applicable and it will come under "Employees Welfare sec. 115WB(2)(E).

If it is provided to only one employee thn it will be part of salary and taxable in the hands of employee.