Insurance of partner

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bhavesh goswami (Querist)
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27 June 2012 Dear Sir,

Whether insurance premium of partner paid by Firm is allowable as deduction to Firm???

Pls it's urgent
Thanking you in advance.
Bhavesh

CA Roshan Jha

CA Roshan Jha (Expert)
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27 June 2012 No. In my opinion such insurance premium of partners paid by the firm shall be treated as partners drawings.

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bhavesh goswami

bhavesh goswami (Querist)
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28 June 2012 Dear sir,

My question is whether it should be disallowed or not?

If staff insurance paid by firm is allowed as deduction so what about premium of partner paid by firm??

Kindly suggest.
thanx in advance