Dear all:
Can you please give your valuable inputs on the taxability of the following employee benefits provided by the employer:
- Group Medical / accident Insurance Premium paid by the employer for the life insurance of the employee.
Its an perquisite for an employee u/s 17(2)(v).
if the premium is paid under any scheme approved by Govt. or IRDA , it cannot be included as perq's in the taxable salary of an employee. company can claim deduction as an expense. read section 17 carefully.
If employer pays any insurance premium on behalf of his employee then it will be regarded as income of the employee and it will be added in the gross salary as perquisite U/s 17(2)(V) . however the following two insurance premium paid by the employer on behalf of employee shall not be taxable for employee:
a) Medical Insurance Premium;
b) Personal Accident Insurance Premium.
Thanks for reply .....but Group /Personal Accident Insurance Premium included in our CTC (gross) and the same amount deducted from our gross salary...
your employer is right. For CTC it will be added as it is paid by employer . For IT purposes it is included as part of salary and since it is exempt it is deducted
it should be exempt from income tax
Well, just becoz employer is showing in CTC, it will not become perquisite in hand of employee. Those are just corporate practices.
remaining fact is this. group medical insurance premium is not a perquisite i, but an expense for the employer. then employee contribution is surely part of his income but not a perquisite.
hope i explained it.
Can the Employer claim the Life Insurance Premium paid on the life of his employees an an Admissible Busines Expense?
CAclubindia
