• Director Insurance Premium

I have formed pvt ltd company .Myself and my wife are only two director .
I am stock market trader and The company is formed for tax saving purpose .
I am planning to buy Single premium insurance .Just wanted to know if I buy it from company account 
Can I show the premium pay to the director as a business expenses or any other from of expenses so the company tax can be bring down 
I am planning to buy Single premium term insurance with premium around 5-6 lakh rs for both Directors .
This year company profit is around 50 lakh .
Asked 8 months ago in Corporate Tax

Hii 

 

Hope you are doing well!!

 

We can claim expenses of key man insurance premium in company t

 

in case of company there is mandatory audit thus you can consult with your auditor there are many types of expenses which we can claim as expenses and can do better tax planning 

Lalit Bansal
CA, Delhi
756 Answers
59 Consultations

5.0 on 5.0

- It would be allowed under a contract of service.

- Will be treated as perquisites in the hands of director

 

For detailed discussion, you may opt for phone consultation.

Vivek Kumar Arora
CA, Delhi
4493 Answers
621 Consultations

5.0 on 5.0

Yes you can show it as business expense but same will be included as perquisite of director if the same is not a group insurance or an insurance for all employees of the company.

 

Hope you find the information helpful, if yes do rate if 5 and provide your valuable feedback for my improvement.

Thank you.

Naman Maloo
CA, Jaipur
4065 Answers
70 Consultations

5.0 on 5.0

Hi

Yes you can show it as business expense and same will be taxable as perquisite of director.

 

 

Regards

Prerna Peshori
CA, Pune
94 Answers

5.0 on 5.0

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