could you please
anybody explain keyman insurance policy in brief.
Any employer may take a life insurance policy in the name of a employee or any other person whom he considers to be an important person or a key person for the organization.
The premium is being paid by the employer and he is allowed to debit the amount paid in his books.
Also, if any amount is subsequently received under the policy, it will be incone of employer.
If the key person is employee, any amount received by him shall be taxable u/h salary
If he is any other person, it will be taxed u/h other sources
CAclubindia
