insurance premium-contribution

What is the nature of insurance?

It is Life insurance premium. Sir,please give me a clear idea of this situation.

EMPLOYER/EMPOLYEE CO PAYS AND GET EXPENSE UNDER EMPOLYEE WELFAREA/C FBT @ 20% OF PREMIUM I.E 6.8% TAX TO BE PAID AS FBT IS PAID PREMIUM WILL NOT BE TAXED INTHE INDIVIUALS HANDS MATURITY TAXFREE FOR MORE INFO CALL B S PATIL 9820084635

EMPLOYER /EMPLOYEE SCHEME BOON FOR TAX PLANNING FOR EMPOLYEES ALSO SUPERANRATION ALSO HELPS TO SAVE TAX UPTO 1 LAC FOR THE BENIFIT OF YOUR EMPLOYEES CALL B S PATIL 9820084635

Assuming that the contract of insurance is between the life insurance company and the individual employee, Answers to your question are: If The employer pays premium on behalf of the employee, this will be construed as income to the employee. Employee will have to offer this as income, in such a case the premium is also costrued as paid out of income and is eligible for deduction u/s 80C. No FBT accrues to the employer, as the premium is offered by employee as his income in its entirety.

when pol taken by co will have conditional asignment i.e if employee work with co for min period of 3 years. as long aspol is not asigned it can not be income inthe hands of employee. as it cannot be perquiste it has to to pay fbt and once fbt is paid on same perqiste in not liable i have copy of opinon from expert on taxtion i have also consulted one more eminent tax lawyer from mumbai in case you are intrested i can make complete prentation to you . my contact no 9820084635 b s patil

Here the question was not regarding policy taken by the employer. Only when the payment of premium on behalf of the employee, when employee is the policy holder. The answer was to the question by the queriest, wha happens if the premium is paid on behalf of employee in such a case.

I am expecting some more replies in this regard...