Life insurance premium paid by employer on behalf of ee......ispe 80 c ki deduction milegi ky quki esa hota hna ki agr koi individual LIP m contribution kr rha h towards self, spouse,and any child or

Nbodara · 30 Apr 2025

Underneath are the relevant sections for clear understanding: Sec17(3): insurance premium paid by the employer for the employee can be declared as business expenses or "profit in lieu of salary" by the business. Sec17 (2) (v): if employer pays insurance on behalf of employee then it will be regarded as income of the employee and it will be added to the gross income of the employee under perquities. Sec80(c):provides exemptions on specific expenditures and investments from income tax up to ₹1.5lakhs. (included life insurance premium) Note- all this applies if the said life insurance premium is not a group insurance for all the employees of the company. In this case, it is a simple expense of the company. And no income for employee.

Kumar · 30 Apr 2025

Employer payment to lic premium is taxable in the head of salaries and lic paid expenditure deduction 80c applicable.

Nbodara · 30 Apr 2025

On a practical basis, LIP paid by a company on behalf of the employee should be an income (full amount of LIP) in the hands of the employee and deduction u/s 80c (max. 1.5lakhs) is applicable. As for the company, the cost of LIP (full amount) should be added to the cost of the employee, deductible under PGBP.