tax treatment of key man insurance premium

[Rahul Bagaria]

What is the tax treatment of Key man insurance premium paid in the hands of the company and in case of maturity proceeds.

AI Summary

Tax Treatment of Keyman Insurance: Section 17(3)(ii) vs. Section 10(10D) on Premiums and Maturity Proceeds A discussion on the tax treatment of Keyman Insurance premiums and maturity proceeds was initiated. One participant explained that under Section 17(3)(ii) of the Income Tax Act, payments received by an employee under a Keyman Insurance Policy are considered 'Profits in lieu of Salary.' In contrast, Section 10(10D) exempts sums received under life insurance policies from taxation, excluding Keyman Insurance. Another participant questioned the need for the query, suggesting the inquirer, with significant experience in life insurance, could provide insights and then seek additional opinions to enhance the discussion.