Premium for keyman insurance policy
This query is : Resolved
abhilasha jain
(Querist)
19 August 2014
Is premium for keyman insurance policy which is assigned to director a Business Expenditure or Personal Expenditure.
19 August 2014
if taken by co its a valid business exp.
abhilasha jain
(Querist)
19 August 2014
But It has been assigned to director by company.
19 August 2014
that means its co who is ultimately paying na so its business exp
abhilasha jain
(Querist)
19 August 2014
Yes co is paying. There is a provision that if policy is assigned by co. to director then proceeds shall be taxable in the hands of the
recipient ie director.
recipient ie director.
19 August 2014
in ur 1st query u had asked whether its personal or business exp so its basically a business exp and if there is a policy stating the same still the person making payment will be eligible for exp
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Rupesh Jain
(Expert)
19 August 2014
it claim as business exp...............
Nikhil Kaushik
(Expert)
19 August 2014
you are confusing between the payment of premium and taxation of redemption proceeds. The expense shall remain business expenses (as tushar has said) whereas any proceeds from keyman insurance policy shall be taxed in director's tax return as profit in lieu of salary under "salaries" head.
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