taxability in hands of employeein case of insuranceby co.

This query is : Resolved

Academy of commerce (Querist)
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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

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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26 February 2008 What do you mean by Employer-employee insurance? under what scheme?

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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26 February 2008 ARE BOTH DIFFERENT POLICIES OR OF WHAT KIND

Academy of commerce

Academy of commerce (Querist)
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26 February 2008 This is just a key man insurance policy.

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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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

Academy of commerce

Academy of commerce (Querist)
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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?

CA Saurabh Maheshwari

CA Saurabh Maheshwari (Expert)
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26 February 2008 NO IT IS TAXABLE IN HANDS OF COMPANY

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