insurance of employee

[d.v. gupta]

sir,

whether insurance premium paid  for  emplyees life deductible as business expediture.if deductible as business expenditure, premium will be added to salary of employee.

AI Summary

Insurance Premiums for Employees Deductible as Business Expenses; Not Added to Salary. An inquiry was made regarding whether insurance premiums paid for employees' life insurance are deductible as business expenses and if they should be added to the employee's salary. The response clarified that the premium does not need to be added to the employee's salary. The insurance premium for employees is deductible as a business expense under general deductions, unlike insurance on plant and machinery, which is deductible under a different section.