Lic premium paid allowed business expenses

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This discussion clarifies whether LIC premiums paid for staff can be claimed as business expenses under the Income Tax Act. While generally not considered a direct business expense, a keyman insurance policy premium may be allowable under Section 37(1) of the Income Tax Act, 1961. However, this is subject to the satisfaction of the assessing officer.

Kollipara Sundaraiah

Kollipara Sundaraiah (Querist)
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25 August 2020 A individual person lic premium paid to staff.
Question:
Premium paid amount eligible for business expenses in I.t. act.

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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31 August 2020 No...it seems to not related to business expenses

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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19 December 2021 Keyman insurance policy contributes to the company’s tax planning - Premium allowed as business expense under section 37(1) of Income Tax Act, 1961, subject to satisfaction of the assessing officer.

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