Admissibility of expenditure incurred by a Firm on Keyman Insurance Policy in the case of a Partner- Reg.

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.... Subject: Admissibility of expenditure incurred by a Firm on Keyman Insurance Policy in the case of a Partner- Reg.      The issue relating to admissibility of expenditure incurred by a firm on Keyman Insurance Policy premium in the case of a partner has been a contentious one. 2. CBDT Circular no. 762/1998 dated 18.02.1998 clarifies that the premium paid on the Keym....

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.... citation 2013-LL-1108-72) Taking into account the Explanation to Clause (10D) of Section 10 of the Income-tax Act, 1961 and the CBDT Circular no. 762/1998 dated 18.02.1998, Courts have held that a Keyman Insurance Policy is not confined to a policy taken for an employee but also extends to an insurance policy taken with respect to the life of another person who is connected in any manner whatsoev....