Talent Acquisition Manager
Finance & Accounts / Audit.
Accounts & Finance
28th May 2010 From India, Lucknow
In this case employer should take care of showing LIC Premium as part of salary only and not as Welfare Expenses. (Fortunately there is no question of FBT here onwards).
Now I would like give practile recommendation that in your case why then ER is paying LIC premium, if they dont want to show as Welfare Expenses. Instead increase the Salary (CTC) of EE to that extent of LIC Premium. Then no further doubts will arise. And if you want to see from ER point of view (that Proposal is ER only) then it must be Welfare Expenses. Because ER can pay premium for EE only for the period of his employment with ER.
29th May 2010 From India, Pune
However a word of caution! Make an assesment of your insurance needs and then see whether your company's initiatives on insurance is sufficient. Chances are it will be short of your requirements.
29th May 2010 From India, Khopoli
Yes, company can claim the premium paid by them either in employer welfare scheme or claim in any other expenditure and claim under section 37 (1) of Income tax.
Where the premium will be considered as a receipt in hands of employee and they can claim the same under section 80 CC for LIC policy and section 80 D for medical insurance policy.
I have one more policy where employee can get tab benefits with immediately and employee can received pension at their retirement
If any of members from this group want more in detail they can free to call me on 98210 14796.
29th May 2010 From India, Mumbai
Take the case of TDS deducted and remitted to the govt. a/c on behalf of an employee by his employer. The amount so deducted was included in his CTC. similarly, he deducts and pays the LIC premium on behalf of an employee basically to ensure that the employees are making some savings. This can be surely claimed u/s 80ccc. the amount would also included in the employee's taxable income too. May be this has no impact but the idea is to make employees save.
29th May 2010 From India, Alandur
As regards premiums paid by the company on employee’s LIC policies, the premiums so paid will be treated as a perquisite in the hands of the employee and taxed accordingly. At the same time, the employee can also avail of tax benefit under Sec80C subject to an overall ceiling of Rs 1,00,000 under all the savings by the employee like Provident fund,NSC, PPF, Equity Linked Savings Schemes in Mutual Funds etc
Whatever benefits in monetary terms are paid by employer will count for CTC.
29th May 2010 From India, Hyderabad
29th May 2010 From India, New Delhi
You can not avail any benefit ,If The payment of premium is paid by an employer
but If it is part of your CTC & the premium amount paid by the employer is included in your gross earnings while calculating tax. then you can avail this benefit.
31st May 2010 From India, Delhi
Hence the employer (company)only pays the premium it is an expense for the company and hence you cannot get the tax benefits. ok. If u want any further clarification or help or assistance on lic policy or matters pl feel free as i am an agent with 25yrs of experience and zonal manager club member. I can even guide u with non taxable pension policies with tax benefits. with greetings. b.radha.
17th July 2011 From India, Madras