Dear All,
our company has taken term life insurance plan for the employees. 40% premium are paid by the employer and 60% paid by the employee. Company has assured to the employee that any additional tax on account of 40% premium as perks tax will be born by the company.
Wealther insurance premium payment to the insurance company will be non monetary payment to the employee. Weather tax born by the employer will be exempted income u/s 10(10CC).
What will be the Treatment of the 40% premium in form 16
Example: Add the preimum born by the company as perks income, add tax born by the company as income to the employee less exemption u/s 10(10CC) of tax paid by the employee.
CAclubindia
