Term insurance premium as exps.
This query is : Resolved
06 June 2019
Dear All,
We want to know whether the premium paid on the term insurance of the Directors can be booked as expenses.
We want to know whether the premium paid on the term insurance of the Directors can be booked as expenses.
06 June 2019
No. (For the income tax view point)
Yes (For accounting view point). This is normally debited to Director's benefits account
Yes (For accounting view point). This is normally debited to Director's benefits account
10 June 2019
so far as income tax act is concerned, the director's insurance expenses can NOT be claimed by the company as deductible expenditure. However, the company may pay the insurance premium and the same may be treated as remuneration to directors, if the terms of agreement between company and director so provide.
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