pls tell me that wat is keyman policy insurance? in detail
Sambhav
(B.com(D.U)CA-Ipcc-final)
(65 Points)
Replied 01 June 2011
Refer to the Section 10 ITA 61which proclaims that in the compettive bussiness scenario all KEY persons of the management are to be kept intact with the BIG firms running on HIGH scale Turnover. Here In case a Co. losses his KEY personnel --> would indirectly lead to loss of revenue / strategy time loss and many other.... just like insuring the stock against LOSS by fire of any other. a managment insures the post of its IMPORTANT persons.
Like i insure YOU as you are the director of my company and i dont wanna lose you in critical handling scenarios.
This money is subjected to TAXAtion in case of mreciept of maturity amount.
Hope this gives you a better understanding.
in case you deal with any other answer, please lemme know!.
Cheers!!
CAclubindia
