Keyman Insurance Policy:

This query is : Resolved

M Subachandran (Querist)
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07 December 2009 1. What is the Premium Limit Allowed as Business Expenditure under sec 37 (1) of Income Tax Act 1961 for Keyman Insurance Policy ?

2. If the limit is Prescribe means, Where it is prescribed?

3. Is there any case law or CBDT cirular for the Limit ?

CA. Bikash Bogi

CA. Bikash Bogi (Expert)
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09 December 2009 There is no such limit specified in Section 37(1) and there is no such case law regarding the limit. The thing that matters is it should be for the Keyman.......

Maturity proceeds will hands in the hands of the company in full as per section 28. Hence there is no relevence of how much premium yoy paid on the policies.