Term insurance premium as exps.

This query is : Resolved 

06 June 2019 Dear All,

We want to know whether the premium paid on the term insurance of the Directors can be booked as expenses.

06 June 2019 No. (For the income tax view point)
Yes (For accounting view point). This is normally debited to Director's benefits account

09 June 2019 Thank for reply,
Can you please elaborate.....


10 June 2019 so far as income tax act is concerned, the director's insurance expenses can NOT be claimed by the company as deductible expenditure. However, the company may pay the insurance premium and the same may be treated as remuneration to directors, if the terms of agreement between company and director so provide.



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