TaxTMI 
TaxTMI 
tax treatment of key man insurance premium
05 Apr 2010 
2 Replies 
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Keyman insurance taxation: proceeds treated as profits-in-lieu-of-salary and not covered by life policy exemption under tax law.
Receipts under a Keyman Insurance Policy are treated as profits in lieu of salary when received by the employee, and the general exemption applicable to life insurance policy sums does not apply to Keyman Insurance Policy receipts, rendering such proceeds taxable on receipt. (AI Summary)
Receipts under a Keyman Insurance Policy are treated as profits in lieu of salary when received by the employee, and the general exemption applicable to life insurance policy sums does not apply to Keyman Insurance Policy receipts, rendering such proceeds taxable on receipt. (AI Summary)
What is the tax treatment of Key man insurance premium paid in the hands of the company and in case of maturity proceeds.