https://www.taxtmi.com/caselaws?id=278318 Premium on Keyman insurance policies taken on the lives of partners is described as deductible business expenditure where the policy protects the firm against loss from the death of a key person and the maturity proceeds accrue to the firm. The article also explains that, for section 14A read with Rule 8D, disallowance must rest on expenditure with a proximate nexus to exempt income; interest on partners' capital is not treated as interest on borrowed money, and where sufficient interest-free funds exist, a borrowed-funds-based proportionate disallowance is not justified. The discussion therefore supports deduction of Keyman insurance premium and a restricted net-interest approach to disallowance. en-us Fri, 28 Aug 2015 00:00:00 +0530 Fri, 25 Jan 2019 08:01:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=278318 Premium on Keyman insurance policies taken on the lives of partners is described as deductible business expenditure where the policy protects the firm against loss from the death of a key person and the maturity proceeds accrue to the firm. The article also explains that, for section 14A read with Rule 8D, disallowance must rest on expenditure with a proximate nexus to exempt income; interest on partners' capital is not treated as interest on borrowed money, and where sufficient interest-free funds exist, a borrowed-funds-based proportionate disallowance is not justified. The discussion therefore supports deduction of Keyman insurance premium and a restricted net-interest approach to disallowance. Case-Laws Income Tax Fri, 28 Aug 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=278318