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Plz guide

CA kanika (JOB) (60 Points)

20 July 2012

plz tell me wht wil b the tax implication of insurance paid by employer on behalf of employee.

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5 Replies

Yajendra Adhikari (Chartered Accountant) (334 Points)
Replied 20 July 2012

It will be added in salary of employee as a perquisite, and accordingly TDS will be deducted u/s 192

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Archana Das (CA Final student) (622 Points)
Replied 20 July 2012

Originally posted by : Yajendra Adhikari
	It will be added in salary of employee as a perquisite, and accordingly TDS will be deducted u/s 192

Agreed the tds rate is the slab rate

CA kanika (JOB) (60 Points)
Replied 20 July 2012

Originally posted by : Archana Das

so dere is no liability of employer to pay tax

S Gupta (Finance Manager) (92 Points)
Replied 20 July 2012

I agree with all and further if the insurance is for company safe ie., policy taken as transit insurance on employees (who are regularly travelling on Official purpose from office to variouse places like banks, Govt Dept) etc, the same will be treated as business expenditure and not taxable under the hands of employee.