Nupur Sharma (CA) (426 Points)
28 December 2008A Company has entered into a Group personal Accident Policy with an Insurance Co. for insurance of its employees.
Some of the employees have been provided with Rent free accomodation (taken on lease by the company).
Query: Can this perk be added in the gross salary Income of the employee for Group accident Insurance Policy??
anil
(traning)
(34 Points)
Replied 29 December 2008
wht do u wanna to know exactly.
salary for calculation of RFA or any thing else.
plz clear
PiyushAgrawal
(Chartered acooutant in practice)
(575 Points)
Replied 29 December 2008
no it shud not becoz it is a group insurance plan and as per section 17 of IT ACT it is not a perquisite. the main reason of that, employee may have benefit not surly so it is not taxable at all.
Sripada M
(CA)
(365 Points)
Replied 29 December 2008
Yes, Piyush agarwal is correct. Group Insurance is not taxable in the hands of Employees as perks.
Pavan Jain S
(Chartered Accountant)
(1575 Points)
Replied 29 December 2008
Group Insurance is liable to FBT
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