Life insurance premium treated as business investment

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FATEMA. (Querist)
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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 .

FATEMA.

FATEMA. (Querist)
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05 June 2014 what would be its effect in books of accounts

CA Madhvi

CA Madhvi (Expert)
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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

Amol S Joglekar (Expert)
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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.

Amol Gopal Kabra (CA,CS,DISA)

Amol Gopal Kabra (CA,CS,DISA) (Expert)
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06 June 2014 You can either show it in investments or show it as drawings. Accounting method wont matter for deduction u/s 80C.

FATEMA.

FATEMA. (Querist)
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12 June 2014 k
thank u...for giving your precious time to attend my querie...

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