Life insurance premium treated as business investment
This query is : Resolved
05 June 2014
sir/madam,
please let me know wether in case of sole proprietor life insurance premium paid can be treated as investment in his books of accounts? and what be its treatment u/s 80c .
please let me know wether in case of sole proprietor life insurance premium paid can be treated as investment in his books of accounts? and what be its treatment u/s 80c .
05 June 2014
generally life insurance premium is debited to capital account as its personal nature,U can also show as an Investments.
Amol S Joglekar
(Expert)
05 June 2014
the paid up value may be shown as investment in the books of proprietor. (The conservative approach suggests that you show the investment at surrender value rather than paid up value)
80C shall not have any effect in books of accounts. It is for the income tax computation purpose only.
80C shall not have any effect in books of accounts. It is for the income tax computation purpose only.
06 June 2014
You can either show it in investments or show it as drawings. Accounting method wont matter for deduction u/s 80C.
12 June 2014
k
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