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FBT ON INSURANCE

bharani (ca) (46 Points)

04 June 2007

normally fbt will be attracted on the insurance premium paid to cover the risk of life of the employees, but whether insurance premium paid on the risk of dependants of the employee, are liable to fbt

pleae anybody can clarify in this regard

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2 Replies

Vk Duggal (320 Points)
Replied 05 June 2007

The employer is paying insurance premium on the risk of family of employee because of his employer-employee relation only. This will fall as perquisite and for FBT will be staff welfare

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Rupesh (CA Practice ) (100 Points)
Replied 08 June 2007

hi,mr.v.k duggal,as u had mention F.B.t is payable on premium paid,pls let me know if life insurance premium paid by employer ( not a group insurance plan & not a statutary obligation of employer) for director or senior level employee , weather it is taxable as perquisite to employee u/s 17(2)(v) or f.b.t is payable by employer under dtaff welfare?