have a query on employer/ee life insurance scheme.( not a key man insurance plan)
if employer is praposer , life assured is employee , premium paid by employer as per resolution passed , beneficiary is employee if policy is assigned to employee or till the policy is assigned , all the benefit will go to employer.
weather premium paid is taxable as perquisite in the hands of employee u/s 17(2)(v) ? if yes on what value it is taxable? &
if it is not taxable as perquisite than weather F.B.T is payable by employer? it is not a group insurance plan & not a statutory obligation of employer.
(it can be taken for senior level employee like. director or president or can be for junior level also.or can be taken for selected employee.)
does it make any difference if any pension plan is taken under employer/ee scheme?
please advice urgently.
thanks
Rupesh shah
mob : 9819 556 886
Menu
urgent , FBT on insurance or tax on perquisite?
Replies (1)
If the premium paid is under statutory obligation then no FBT will be paid since its an obligation and not a direct benefit that employer is providing to its employees..
Secondly, such payments are not perks u/s 17(2)(v)..
Thirdly, since the fringe benefit is for the employees benefit it shall be taxed @ 20%
for further Clarification go through circular No.8/2005
Recent Threads
- ITR-2 Payment Made but Status Not Updated
- Need help for ITR filing
- ITR Updated returns. Time limit for filing
- ITR 2 Processed and Refund Credited to Bank
- Freelancer or Salaried
- LTCG Tax & Indexation on Debt Mutual Funds Sol
- Section 45(5A) and 194IC with carry forward of tds
- Paid tax amount, CIN generated and challan downloa
- INTRADAY INCOME PRESUMPTIVE INCOME
- Clarification on Deemed Export Status for EOU-to-E
Related Threads
CAclubindia
