Dear Sir / Madam.,
Life Insurance to LIC is "Long Term - Unquoted Securities...... Then.,
How to deal "Life Insurance Premium to "STATE BANK LIFE INSUARNCE"?
How to I take it as "UNQUOTED OR QUOTED"?
S ELAVARASI (ACCOUNTANT) (2975 Points)
09 February 2018Dear Sir / Madam.,
Life Insurance to LIC is "Long Term - Unquoted Securities...... Then.,
How to deal "Life Insurance Premium to "STATE BANK LIFE INSUARNCE"?
How to I take it as "UNQUOTED OR QUOTED"?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(168971 Points)
Replied 09 February 2018
SBI Life Insurance is a joint venture life insurance company between State Bank of India, the largest state-owned banking and financial services company in India, and BNP Paribas.
The Life insurance premium paid is for any product offered by the SBI Life Insurance company....
It has nothing to do with the shares price of the company on stock exchange....
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 09 February 2018
Thank You for the reply Sir.,
Then How to show the Insurance premium amount in ITR balance sheet....
It's "Long Term - Unquoted Securities or Long Term Quoted Securities"
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 09 February 2018
Sir...
A assessee have two Insurance policies like LIC & SBI... Preparing ITR for AY 2017-18...
I will show it in Investment head.. In this head the following sub heads are showing
* Long Term - Quoted Securities
* Long Term - Unquoted Securities
* Short Term - Equity Shares
* Short Term - Preference Shares
* Short Term - Depenture...
Which option I choose?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(168971 Points)
Replied 09 February 2018
Whatever be the nature of policy, no need to show it under any catagory in BS. The premiums are accounted as personal expenditures... the premium paid for personal insurance is treated as capital withdrawal, if paid from business account.
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 10 February 2018
Thank You for the reply Sir...
But,
In Balance Sheet the Insurance, Investments and Deposits are shown by CA.... then Why...? And How?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(168971 Points)
Replied 10 February 2018
Generally life insurance policy amount is not shown as asset unless it is money back policy or any similar product, where some amount gets credited periodically. Here, the premium amount is expense which doesn't qualify as asset, but the insured value of the policy may be taken as investment.
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 10 February 2018
Yes...
The Premium will paid every Quarter and It's taken under 80c deductions. But, Our CAs is shown the details in BS... Every year it's going to higher (Openiing Balance + Premium paid = Closing Balance 10000+2000 = 12000....)
Manjula Moorthy
(Qualified CS CA Finalist)
(209 Points)
Replied 10 February 2018
It is advisable you speak to your CA once. There is a possibility he might have misinterpreted the nature of the policy but what Sir has mentioned above is the correct treatment.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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