Deduction from salary incom

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RAJESH VERMA (Querist)

24 March 2014 EMPLOYER DEDUCTED FOLLOWING CONTRIBUTION FROM SALARY INCOME. WHETHER IT IS ALLOWABLE AS DEDUCTION IN INCOME.OF EMPLOYEE
1. GSL TEREM PREMIUM
2. GROUP SAVING LINKED PREMIUM
3. RISK PREMIUM- LIC EMP. GROUP SCHEME.
AND ONE MONTH'S SALARY IS GIVEN BACK TO EMPLOYER WHETHER IT IS ALLOWABLE.

RAJESH VERMA

RAJESH VERMA (Querist)

26 March 2014 EMPLOYER DEDUCTED FOLLOWING CONTRIBUTION FROM SALARY INCOME. WHETHER IT IS ALLOWABLE AS DEDUCTION IN INCOME.OF EMPLOYEE
1. GSL TERM PREMIUM
2. GROUP SAVING LINKED PREMIUM
3. RISK PREMIUM- LIC EMP. GROUP SCHEME.
AND ONE MONTH'S SALARY IS GIVEN BACK TO EMPLOYEE WHETHER IT IS ALLOWABLE.

RAJESH VERMA

RAJESH VERMA (Querist)

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

20 July 2024 Let's address each component of your query regarding deductions from salary income and whether they are allowable under the Income Tax Act:

### 1. GSL Term Premium

- **GSL Term Premium**: This likely refers to Group Superannuation Scheme (GSL) Term Insurance Premium. Typically, premiums paid towards group insurance schemes like GSL are deductible under Section 80C of the Income Tax Act, subject to a maximum limit of Rs. 1.5 lakh per financial year.
- **Allowability**: Yes, GSL Term Premium paid by the employer on behalf of the employee is allowable as a deduction under Section 80C, provided it is within the overall limit of Rs. 1.5 lakh.

### 2. Group Saving Linked Premium

- **Group Saving Linked Premium**: This could refer to premiums paid towards a group savings plan linked to insurance or investment benefits provided by the employer.
- **Allowability**: If this premium is a part of a recognized group savings plan or insurance scheme, it may qualify for deduction under Section 80C, subject to the overall limit of Rs. 1.5 lakh.

### 3. Risk Premium - LIC Employee Group Scheme

- **Risk Premium - LIC Employee Group Scheme**: This refers to premiums paid towards a group insurance scheme provided by LIC for employees.
- **Allowability**: Premiums paid towards group insurance schemes are generally eligible for deduction under Section 80C, subject to the overall limit of Rs. 1.5 lakh.

### 4. One Month's Salary Given Back to Employer

- **Repayment of Salary**: If one month's salary is given back to the employer, whether voluntarily or as part of an arrangement, it does not qualify as a deduction under the Income Tax Act.
- **Tax Treatment**: Repayment of salary to the employer is not deductible from the employee’s taxable income. It is treated as a reversal of income and does not impact the taxable income of the employee.

### Conclusion

- **Deductions**: GSL Term Premium, Group Saving Linked Premium, and Risk Premium under LIC Employee Group Scheme are generally allowable deductions under Section 80C, subject to the specified limits.
- **Repayment of Salary**: Repayment of salary to the employer is not deductible from the employee’s taxable income.

It's important to verify the specific nature and purpose of these deductions with respect to the policies and schemes provided by your employer and ensure compliance with the provisions of the Income Tax Act. If you have any doubts or need clarification, consulting with a tax advisor or accountant would be advisable.

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