Keyman Insurance

Tax queries 663 views 4 replies

Nikhil Kumar

CA Qualified CPA

910 Points Joined January 2009

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

Thanks

Nikhil

Replies (4)

Dinesh N

Article

156 Points Joined June 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 Joined November 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.	"