taxability in hands of employeein case of insuranceby co.
This query is : Resolved
26 February 2008
A company wants to take employer -employee insurance.so firstly i want to know that premimum which was paid by the company is libele to FBT, and the premium paid by company for the employee is taxable in the hands of employee or not?
and if this policy assign to employee after a year on surrender value then what tax libility will comes in?
And amount received on meturity of policy by employee is taxable or not?
Megha Gupta
and if this policy assign to employee after a year on surrender value then what tax libility will comes in?
And amount received on meturity of policy by employee is taxable or not?
Megha Gupta
26 February 2008
What do you mean by Employer-employee insurance? under what scheme?
26 February 2008
ARE BOTH DIFFERENT POLICIES OR OF WHAT KIND
26 February 2008
This is just a key man insurance policy.
26 February 2008
UNDER KEY MAN INSURANCE POLICY ANY PREMIUM PAID BY THE COMPANY SHALL BE ALLOWABLE TO COMPANY AND NOT TAXABLE IN HANDS OF EMPLOYEE AND AT THE TIME OF MATURITY ALL THE PROCEED WILL FORM PART OF BUSINESS INCOME AND TAXABLE UNDER THE HEAD PGBP IN HAND OF COMPANY
26 February 2008
And if policy surrendered by the company and on maturity the proceed receive by employee,then is it taxable in hands of employee?
26 February 2008
NO IT IS TAXABLE IN HANDS OF COMPANY
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