Payment of Insurance Premium on behalf of Employee

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.

Replies (2)

Dear Dinesh,

In your case 40% amount which is paid by the company will be taxable under section 17(2)(v) and deduction under section 10(CC) will also be available as this will be non monetry perquisite.

Dear Dnesh Sir,

Agree with friend Shudhanshu

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