26 February 2008
A company wants to take employer -employee insurance.so firstly i want to know that premimum which was paid by the company is libele to FBT, and the premium paid by company for the employee is taxable in the hands of employee or not?
and if this policy assign to employee after a year on surrender value then what tax libility will comes in?
And amount received on meturity of policy by employee is taxable or not?
26 February 2008
UNDER KEY MAN INSURANCE POLICY ANY PREMIUM PAID BY THE COMPANY SHALL BE ALLOWABLE TO COMPANY AND NOT TAXABLE IN HANDS OF EMPLOYEE AND AT THE TIME OF MATURITY ALL THE PROCEED WILL FORM PART OF BUSINESS INCOME AND TAXABLE UNDER THE HEAD PGBP IN HAND OF COMPANY
CAclubindia
