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Keyman Insurance

Nikhil Kumar (CA , Qualified CPA) (910 Points)

09 December 2009

What are the features of keyman insurance scheme as relating to income tax?........deductibility etc

Thanks

Nikhil

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4 Replies

Dinesh N (Article) (156 Points)
Replied 09 December 2009

Key Man Insurance Policy

Its an insurance policy taken by a company on its Key Managerial Personnel. If the company is paying the premium, it will be allowed as a deduction u/s 37, & once the policy matures & the amount becomes refundable will be taxable in the case of company as business income & if received by employee will be taxable as income from other sources.

Ansari (ca final) (444 Points)
Replied 09 December 2009

Originally posted by :Dinesh N
"	Key Man Insurance Policy Its an insurance policy taken by a company on its Key Managerial Personnel. If the company is paying the premium, it will be allowed as a deduction u/s 37, & once the policy matures & the amount becomes refundable will be taxable in the case of company as business income & if received by employee will be taxable as income from other sources.	"