Employer Employee Insurance Scheme – how to get benefited

(Last Updated On: March 14, 2019)

Employer-Employee Insurance Scheme is an insurance arrangement between the two, where, the employer purchases an insurance policy for the employee. This arrangement is based on the principle that the employer has an insurable interest in his/her employees. The interesting fact is that both the employee and the employer is benefited through this arrangement.

How is it possible? let us have a detailed look.

Employer-Employee insurance scheme – who is eligible?

  • Combined shareholding of the employee and his or her relatives such as spouse, children, in-laws, parents, siblings etc. in the employer company should not exceed 51 %.
  • Any company, Partnership firm, or even proprietary concern shall be eligible for taking insurance for their employees under this scheme.
  • Even a loss-making company can get the benefit of this scheme.
  • All plans and all modes are allowed for this scheme.

Employer-Employee insurance scheme – benefits to the employees

  • This scheme works as a reward programme for employees and helps in raising their morale.
  • Even though the premium amount is paid by his employer, the employee can claim income tax exemption u/s 80C.
  • Maturity proceeds will be available to the employee only.
  • Entire maturity proceeding will be tax-free u/s 10(10D) of income tax act.
  • Death claim, if any, shall be paid to the nominee, nominated by the employee.

Employer-Employee insurance scheme – benefits to the employer

  • The employee will feel to be more secured and honored and naturally, the loyalty to the employer is enhanced.
  • The employer is entitled to get exemptions for the premium amount (whether it is under single or non-single mode) u/s 37(1) of Income Tax act as business expenses of the firm.
  • Exemption u/s 37(1) can bring monetary benefits to the company.

Employer-Employee Insurance – Two types of arrangements possible.

Two types of Employer-Employer insurance arrangements are possible.

  1. Type A – The employer is the proposer and employee is the Life Assured
  2. Type B – The Employee is the proposer and Life Assured

In these two situations, the contract will work in two different methods. Let us have a detailed look at it.

Type A – Employer is the proposer and Employee the Life Assured

  • Proposal form for another life has to be used. In the case of LIC, form number 340 has to be used.
  • The policy shall be assigned to the life assured (employee) as per an agreement between the Employer and Employee.
  • The proposal should be signed by a person authorized by resolution.
  • A separate letter mentioning the ‘object of insurance’ and the ‘restrictions’ the employer desires to impose has to be obtained.
  • Book of Accounts or IT orders for the last 3 years of the company to prove the profitability. (As the premium liability lies with the company).
  • The Employer should undertake to assign the policy to the Employee absolutely upon the Employee continuing to remain in employment with the Company for a period specified by the Employer.Usual period is around 3 to 5 years.
  • The company can impose restrictions on the employee to prevent him from surrendering or taking loan from the policy.

The employer can continue to pay premium even after the prefixed ownership period and avail the tax benefits. If the Employee quits the job within the specified period, the Employer can either surrender the policy for its surrender value to the insurance company or absolutely assign the policy to the employee as a part of the terminal benefits.

Type B – The Employee is the proposer and Life Assured

  • Proposal for own life has to be used (in case of LIC form number 300 is used)
  • No need of assignment of the policy from the employer.
  • Employee is the owner of the policy without any restrictions.
Corporate Tax Rate for Domestic Companies in India
  1. A flat rate of 25% corporate tax is levied on the income earned by a domestic corporate.
  2. A surcharge of 5% is levied in case the turnover of a company is more than Rs.1 Crore for a specific financial year.
  3. 3% educational cess is levied on the tax.

Employer Employee insurance scheme all details

Employer-Employee insurance scheme – Example of benefits
Let the premium of the policy taken under Employee scheme be 1 crore
Employer  www.insurancefunda.in Employee
Premium of 1,00,00,000 paid by the employer on behalf of the employee Employer employee insurance scheme Premium paid by the employer is treated as perks to the employee
 Employer employee insurance scheme
Employer can pay income tax on behalf of the employer u/s 192(1A) on the perks of the employee  Employer Employee insurance scheme Rs 1 crore as perqs U/S 17 (2) V of income tax act will attract a tax of 30,00,000 @ 30 %
 Employer employee insurance scheme
Tax on the tax paid (Rs. 30,00,000) will also become the liability of the company. The company will have to pay an additional tax of 9,00,000 on the tax paid along with 30,00,000 tax.
 Employer employee insurance scheme
So the total tax liability of the company will be Rs. 39,00,000.  Employer employee insurance scheme (Employee can claim IT rebate u/s 80C on the premium paid if required.)
How the employer is benefited even if there is a tax liability of 39,00,000Let us consider the situation
in the absence of the employer
employee insurance schemeProfit of the company would have increased by Rs. 1,30,00,000Tax @ 25%                                                 = 32,50,000Surcharge @ 5%                                        = 6,50,000Educational Cess@3% on Tax+Surcharge = 1,17,000Tax Liability                                                = 40,17,000Increase in Net Profit = 1,30,00,000 – 40,17,000 = 89,83,000If the company declares
this amt as dividend, again
dividend distribution tax @ 20 %
(including surcharge) is payable.Tax liability on dividend distribution = 17,96,600
(20% of 89,83,000)Total Tax liability =40,17,000 + 17,96,600 = 58,13,600On the other hand if employer employee insurance policy is taken, only Rs 39,00,000 has to be paid.Nett Benefit on tax payment = 58,13,600 – 39,00,000 = Rs 19,13,600 (Per YeaEmployer-Employee

Employer-Employee Insurance scheme – Important points to remember
  • Either the employer or Employee can be the proposer of the policy.
  • If employer is the proposer, the policy should be assigned to the employee within a reasonable period of time.
  • Maximum Sum Assured will depend on the financial underwriting rules and existing insurance on the life of the employee.

Maturity amount will be tax free u/s 10(10D) of Income Tax AcEmployer-Employee

Employer-Employee Scheme Vs Key man Insurance

It is natural to confuse employer-employee insurance with key man. Even though in both cases employer purchase a policy on employee, the two are very different. In key man insurance, one can only purchase term life cover. On the other hand employer-employee structures can be used for any kind of insurances.

In key man the insurance benefit on death is paid to the company and is subject to income tax. However, in employer-employee scheme the benefit is paid to the employee and is tax free.

Employer Employee Scheme from LIC of India

Form number 340 or 300 has to be used respectively for the employer or employee being the proposer of the scheme. If form number 340 is being used the policy will have to be assigned in favour the employee within a reasonable period.

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Anish L J
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Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.
Anish L J
Follow me

Anish L J

Anish L J is a 'Financial Planner' and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.

83 thoughts on “Employer Employee Insurance Scheme – how to get benefited

    • August 21, 2017 at 6:09 am
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      Hi Ravikumar,
      Please elaborate your comment..

      Reply
  • September 9, 2017 at 4:08 pm
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    Hi .. Sir have asked CA … says lic payment is taxable on maturity in employer employee .. and how does it benefit if company does not pay dividend tax …!!!??

    Reply
    • September 10, 2017 at 6:01 am
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      Hi Kuntal Shah,
      That information is wrong. The maturity proceedings are tax free under employer employee scheme. Your CA might have confused it with key man insurance. If dividend tax is not there the benefit could be nominal.

      Reply
  • January 23, 2018 at 12:08 pm
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    Hello Sir,
    Thank you for the informative articleIf the policy is withdrawn after the lock in period but before the maturity term of the policy and the benefits are going to employee (while premium has been paid by employer and shown as expense to the company for 5 consecutive years) what will be the tax implication to the employee and if tax is to be paid by employee will it be on total amount withdrawn or only on total premium paid?

    Reply
    • January 26, 2018 at 4:09 am
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      Tax liability is on premium paid per year only.

      Reply
  • January 30, 2018 at 7:04 am
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    WHAT WILL BE THE TAX IMPLICATION AT THE TIME OF ASSIGNMENT OF THE POLICY TO THE EMPLOYEE . WILL THE EMPLOYEE HAS TO PAY TAX ON SURRENDER VALUE AT THAT TIME.

    Reply
    • February 2, 2018 at 3:17 pm
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      Surrender value and maturity value is not taxable for insurance policies.

      Reply
  • January 30, 2018 at 7:26 am
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    I HAVE BEEN SUGGESTED BY MY INSURANCE AGENT THAT THE PREMIUM PAID BY THE EMPLOYER MAY NOT BE TREATED AS PERQ IN THE HAND OF EMPLOYEE AND THUS NO TAX HAS TO BE PAID AT THAT TIME, BUT AT THE TIME OF ASSIGNMENT EMPLOYEE HAVE TO PAY TAX ON THE SURRENDER VALUE. IS IT TRUE??

    Reply
    • February 2, 2018 at 3:25 pm
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      Premium paid by the employer will be treated as perqs and the tax liability is born by the employee. As the maturity amount and surrender value is not taxable no tax shall be payable by the employee or employer.

      Reply
  • February 24, 2018 at 9:22 am
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    Hello sir,
    But, I have got information that in 2014 one of circular issued for (Emp-employer tax benefits)37 (1) that where employer will not take benefit of Maturity as tax free. Kindly guide about circular.

    As per current cenario an Employer -employee policy will be same benefits on Maturity or is it taxable???

    Reply
      • February 26, 2018 at 2:58 pm
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        can director take policy under employer employee schme? and what is shere holding % restiction? pleae guid

        Reply
        • March 2, 2018 at 12:24 am
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          It is not the director taking a policy in case of employer employee scheme. It is the employer or the company. Only restriction is that the Combined share holding of the employee and his or her relatives such as spouse, children, in-laws, parents, siblings etc. in the employer company should not exceed 51 %.

          Reply
          • December 20, 2018 at 10:53 am
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            What all relatives are considered for the 51% limit?

          • December 24, 2018 at 4:18 pm
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            The persons who are considered as relatives under are:-

            In case of an individual

            1. Spouse of the individual

            2. Brother or sister of the individual

            3. Brother or sister of the spouse of the individual

            4. Brother or sister of either of the parents of the individual

            5. Any lineal ascendant or descendant of the individual

            6. Any lineal ascendant or descendant of the spouse of the individual

            7. Spouse of the person referred to in above points

            In case of HUF – Any member of the HUF

      • March 13, 2019 at 2:12 am
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        Dear Sir, Certain CA says that under 37(1) only keyman policy allowed employer-employer can be challenged by IT dept and it is disallowed expense.please provide the judgement in favour of assese( client) if employer employee is challenged judgement gone in favour of customer.
        2) If in employer employee death of customer happens before assignment. The SA goes to company or employees and what is tax liablity

        Reply
        • March 14, 2019 at 3:42 pm
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          Section 37(1) benefits are available for Employer-Employee and no need to have doubt about it. I’ll do more research and give information regarding judgments soon.
          2. If death happens before assignment the sum Assured go to the company but the company can pay it back to the nominee of employee and avoid tax. I am still awaiting some clarification on the tax liability of the company if it is not paid back to the employee family. Will update soon.

          Reply
  • February 27, 2018 at 1:22 pm
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    under Employer -employee policy is there any limit on the No. of policies . My CA has told that employer can got issue more than one policy in any one particular employee.

    Reply
  • February 27, 2018 at 1:26 pm
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    my CA has told that the employer can not get issue more then one policy in name of one particular employee

    Reply
    • March 2, 2018 at 12:16 am
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      I don’t see any restriction on the number of policies taken by an employer any where.. On what basis CA has told that. Please share if you have any authenticate information.

      Reply
  • March 9, 2018 at 7:14 am
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    As per the article it is written that Employer will get Tax relief U/S 37(1) and the Employee too will get relief U/S 80(c) , kindly explain. As is it allowed for both to get tax relief ?

    Reply
  • March 19, 2018 at 12:38 pm
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    In Partnership firm, Can partners take policy in his name?

    Reply
    • March 30, 2018 at 12:54 am
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      Partners can take EEIS policies subject to certain conditions. Combined share holding of the employee and his or her relatives such as spouse, children, in-laws, parents, siblings etc. in the employer company should not exceed 51 %.

      Reply
  • March 28, 2018 at 6:37 am
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    Hi,

    As per the recent judgment of the Supreme Court that the maturity amount comes in employee hands are taxable wild premium paid by employer. As employer paid the premium and taken a taxation benefit under section 37(1) then how come employee can take 10(10)D. As all the amount treated as percusses in employee hand under section 17 of Income Tax. And same already clear by the Income Tax Auditor, there is resent case filed by one of the company and company conquer the case and paid 2Cr as Tax on that. And case study is available online. pls refer.

    Need your guidance on same along with reference link and rule no. so that I can refer the same

    Reply
    • September 13, 2018 at 11:26 am
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      I understand tax liability of the employee is taken care by the employer u/s 192(1A), also paid tax (which is considered as perquisites u/s 17(2)(iv) on said tax amount of employee, then it becomes tax free in hand of employee.

      Reply
  • August 28, 2018 at 2:59 pm
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    Hello,
    can a proprietor of the proprietorship firm take a policy in the name of spouse or children u/s 37 (1)

    Reply
    • August 29, 2018 at 3:01 pm
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      Are the spouse and children partners of the firm and in that case yes. Otherwise no.

      Reply
  • October 17, 2018 at 2:30 pm
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    What would be the tax liability if the employer is paying for single premium pension plan on employee life where being a pension plan maturity or pension will be taxable in the hands of employee

    Reply
    • October 18, 2018 at 5:00 am
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      Pension amounts or annuity received are always taxable as they are considered as the income of the beneficiary.

      Reply
  • November 16, 2018 at 9:30 am
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    I am a partner in a firm. With my wife and mother as partners . I hold 52% share in the partnership. Can I take shiromani policy in my firm name and get tax benefit on behalf of the firm??

    Reply
    • November 16, 2018 at 1:40 pm
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      No, that is not possible. Please refer to the condition “Combined shareholding of the employee and his or her relatives such as the spouse, children, in-laws, parents, siblings etc. in the employer company should not exceed 51 %.”

      Reply
  • November 19, 2018 at 10:00 am
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    Thanks for your prompt reply.
    My CA tells me Otherwise, according to him I can get benefit of Shiromani policy because, though I am a 52% partner in the firm, I get a remuneration from the partnership, and because ‘remuneration’ is treated by Income tax as ‘ salary’ , I fall into category of’ Employee ‘ of the firm, and am therefore eligible for full tax deduction to Shiromani from my company account. As I am employer and employee, as I get a salary.
    Thanks

    Reply
    • November 24, 2018 at 4:21 pm
      Permalink

      Dear Sir,
      I don’t think it is possible.

      Reply
  • November 20, 2018 at 6:03 am
    Permalink

    Thanks for your prompt reply.
    My .CA tells me that according to Income Tax act, I am not only a partner in the partnership firm, but also employee since I receive remuneration which is treated as salary by Income tax . As i am given salary, I am an employee, and therefore my partnership firm can write off/ deduct from profit, entire premium paid for shiromani policy.
    Pls clarify. Thanks in advance.

    Reply
  • November 20, 2018 at 5:51 pm
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    I DONT UNDERSTAND WHEN FLAT RATE OF 25% IS CHARGED ON PROFIT EARNED ie 10000000 WHICH IS 2500000 THEN HOW IT IS SHOWN ON 13000000

    Reply
    • November 24, 2018 at 4:30 pm
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      What is shown is 25% corporate tax and 5 % surcharge which add up to 30%. I think it clears your doubt.

      Reply
  • November 20, 2018 at 5:53 pm
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    i am talking of corporate tax and 12% extra charged levied on tax paid

    Reply
  • December 16, 2018 at 4:06 pm
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    Tax liability on dividend distribution = 17,96,600
    (20% of 40,17,000)

    Sir, Why dividend distribution tax has been calculated on tax liability amount in this calculation?

    Reply
    • December 19, 2018 at 4:32 pm
      Permalink

      Dear Suresh,
      That was a typing mistake. Thank you for notifying me the error. I have rectified the defect. It has to be 20% of 89,83,000.

      Reply
  • December 22, 2018 at 7:13 am
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    Hi, can employer employee scheme be given in the name is partners? The firm has 3 parter with equal shares & drawing salary, which is shown in the individual ITR/ computation. Please advice

    Reply
    • December 24, 2018 at 4:51 pm
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      As long as the partners are not relatives and are drawing salary, employer employee scheme can be taken.

      Reply
  • December 23, 2018 at 1:24 pm
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    is this article stands true in accordance with present laws & regulations as well? My query is on tax rate, DDT etc.

    Reply
    • December 24, 2018 at 4:54 pm
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      It is true as per the current tax rules.

      Reply
        • January 2, 2019 at 12:19 am
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          There are some changes in the cess rate I shall update it soon.

          Reply
  • December 27, 2018 at 4:35 am
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     Liability of employee is born by Employer which was 30% of 1 Cr i.e. 30L only then why
     9L additional is paid by employer

    Please elaborate.

    Reply
    • December 28, 2018 at 4:40 pm
      Permalink

      As per the income tax rule, employees/employer are obliged to pay tax on the tax paid by their employers on their behalf. Thus tax liability of 9 lakh is there on the 30 lakh tax paid by the employer on behalf of the employee.
      There is a news that a court verdict from Uttarakhand high court, Tax paid by an employer on behalf of employees is a non-monetary remuneration and therefore exempt from tax. As it has not come as an order I cannot comment on it.

      Reply
  • December 29, 2018 at 1:38 pm
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    Dear Anish ji,

    i have a query regarding Employer Employee Insurance.
    i wanna talk to you on phone . Please provide me your Contact Number.

    Regards,
    Naveen Sehgal
    Ph.9258077791

    Reply
    • January 1, 2019 at 11:42 pm
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      Please use the comment section for your queries.. Naveen

      Reply
  • January 8, 2019 at 12:48 pm
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    Suppose the premium paying term is 10 years for the policy taken under Employer- Employee scheme and the employee is moving out of the company on 7th year. Now, who is eligible to avail the surrender benefit if the employer decides to surrender the policy. Also clarify whether the employer has the rights to surrender the policy during premium paying term.

    Reply
    • January 9, 2019 at 1:26 pm
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      The employer does not have any right to surrender the policy. Surrendering a policy is the right of policyholder only.

      Reply
  • January 15, 2019 at 1:44 pm
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    Hi anish ji,

    If the company does not assign the policy on the name of employees & on maturity the amount is given back to employer, so what is the tax treatment of marurity value in the hands of enployer?

    Reply
    • January 15, 2019 at 4:11 pm
      Permalink

      The policyholder is the owner of the policy and company need not assign the policy to the policyholder. The maturity value naturally goes to the policy holder.

      Reply
      • January 23, 2019 at 1:02 pm
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        Hello Anishji,

        Please explain what will happen if an employee leaves the organisation before the maturity of the policy and in that case will it be beneficial for the company.

        Regards,
        Rajshree.

        Reply
        • January 31, 2019 at 3:16 pm
          Permalink

          Hi Rajshree,
          The employee is the policyholder and he can enjoy the benefits of the policy even if he is an employee or not in the company. For the employer, the advantage of providing such a policy is that it will help in increasing the loyalty of the employee towards the company. If he still leaves, it is the responsibility of the employee to pay the premium. There is no agreement that the company will pay the premium even if the employee leaves the company. As the company is not paying, there will not be any tax benefit also.

          Reply
  • January 30, 2019 at 2:08 pm
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    Sir , today I visit one of my client and he is query that if is save amount under this clause 37/1 and 17/2 ….could it iffacet on his gross profit at the time of business loan in future

    Reply
    • January 31, 2019 at 3:47 pm
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      Your question is not clear but I would like to say that there is no connection with the perks and tax on it in the future business loan of the company.

      Reply
  • February 6, 2019 at 8:36 am
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    Is the maturity proceeds Taxed at the hands of the employee?

    Reply
    • February 7, 2019 at 1:06 am
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      Maturity proceeds are exempted from tax under section 10(10D) as normal in case of Employer-Employee scheme also.

      Reply
  • February 9, 2019 at 2:28 pm
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    In case of ulip in employer employee if the policy is assing after 4 the year , what is the amount that will get added to life insured income

    Reply
    • February 10, 2019 at 1:58 am
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      ULIPs do not qualify for Employer employee scheme.

      Reply
  • February 16, 2019 at 4:00 pm
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    Why the profit of the company is considered as 1.3 cr insteadof 1 cr

    Reply
    • February 16, 2019 at 4:23 pm
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      Premium paid by the company is considered as perks and company is paying tax on it. The Tax paid is 30 lakhs. If the E-E scheme is not there this 30 lakh also is part of the profit. So the total profit increases by 1 Crore + 30 Lakhs. and the total is 1.3 crores. I think it is clear.

      Reply
  • February 24, 2019 at 1:34 pm
    Permalink

    Hi sir, I pitched this employer employee key solution to pvt ltd co. Their doubt is, if it is keyman it can be considered as an expenses.. but if it is money back savings and protection plan, anyhow they are gonna get the amount at the maturity so that should be treated as asset in P&L book know?? Then how come the tax can be deducted?? Can you please explain

    Reply
    • February 24, 2019 at 4:25 pm
      Permalink

      The main point to be considered is that the maturity amount of Employer-Employee scheme is directly paid to the employee only and hence there is no chance that the amount will come in the profit/loss book of the company. I think it is clear.

      Reply
  • February 28, 2019 at 6:46 am
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    is there a minimum number of employees that need to covered to take this policy.
    Second in case of self prorietor he will be holding 100% of the shareholding. Thus will he be violating the 51% clause.
    Third a person whose taxable salary is less than 10 lacs need not pay tax on perquisite- so will he pay tax in that regards and if he doesnt require to pay tax will the company be required to pay tax on tax in that matter?
    fourth at the time of leaving the organisation how is the surrender value calculated esp what happens if it is a medical insurance under employer- employee

    Reply
    • March 1, 2019 at 12:47 am
      Permalink

      1. There is no minimum number of employees that need to be covered in this scheme.
      2. A person who is a 100% shareholder cannot take policy under this scheme.
      3. The person whose taxable salary is less than 10 lacs also should pay tax on prerequisite. Actually, Perqs are added to income and tax has to be paid depending on the slab of income.
      4. When the employee is leaving the organization there is no need to surrender the policy. Maturity is paid to the employee like any other policy. The company no longer can claim tax benefits on the policy once the employee leaves the organization.

      Reply
  • March 1, 2019 at 11:11 am
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    Dear Sir

    I have read through the questions and answers in detail. I request you to share the complete detail on tax impact on employer and employee as per law. That will be very helpful.

    Thanks

    Reply
    • March 2, 2019 at 3:47 pm
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      Thank you for your suggestion… I shall do it soon…

      Reply
  • March 6, 2019 at 5:58 am
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    Employer is the proposer under employer employee scheme, policy was processed under the condition that if employee continues his services with organization for minimum 4 years, employer will assign the policy to the employee. Can this be done after 4 years of service of the employee?

    Reply
    • March 7, 2019 at 1:22 am
      Permalink

      In Employer-employee scheme, two types of arrangements are possible. one is the employer is the proposer of the policy and employee life assured. and the other case is the employee is the sole owner of the policy. In the first case, the employer can surrender the policy if the employee quits the job before the prefixed period.
      In the second condition, the employer cannot surrender the policy.

      Reply
  • March 7, 2019 at 9:25 am
    Permalink

    Hi Anish Ji,

    with this example that you have shared shows that employee will get benefit of Maturity amount and employer will get loyalty and retension benifit after expanding 1Cr + 30 Lac + 9 Lac= 1.39CR

    if he not paid such amount for employee welfare then he will be in profit of Rs. 89.83 lac which he can distribute as dividend.

    Reply
    • March 7, 2019 at 4:22 pm
      Permalink

      Can you make your question little more clear?

      Reply
  • March 7, 2019 at 1:22 pm
    Permalink

    Dear Mr Abish

    Is the premium paid by the employer in the name of the employee treated as perquisite in the hands of the employee? Does he have to pay tax on that even though the policy is not assigned in the name of the employee?

    Reply
    • March 7, 2019 at 4:27 pm
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      Premium paid is treated as perquisite. There is no question of an assignment. The policyholder is the owner of the policy even if the employer pays the premium.

      Reply
      • March 15, 2019 at 7:25 am
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        Hi, I just want to have more clarity on perqusite part , if for example co is paying 2lacs per annum premium for employee then will this 2 lacs be taxable every year as perqusite in the hand of employee? And if employee salary is less than minimum taxable thresh hold even after including the above mentioned perqusite then does he need to pay any tax on perqusite?

        Reply
        • March 15, 2019 at 2:30 pm
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          Perqs is considered as income when income tax liability is calculated. If your total income including perquisites is below the taxable threshold you need not pay any tax.

          Reply
  • March 12, 2019 at 7:04 am
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    Can company makes itself as nominee in aa Employer-Employe LIC taken on name of employee

    Reply
    • March 12, 2019 at 2:51 pm
      Permalink

      Hi Vikas,
      A company cannot be a nominee in the Employer-Employee scheme. Nomination in policy has certain guidelines which have to be followed in all the cases. Read more here.

      Reply
  • March 16, 2019 at 11:40 am
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    Sir… What will be scenario if in A list employee re- assign the policy from company to individual….in condition of term.plan which gives maturity benefits with Return of premium

    9988993671

    Reply
    • March 16, 2019 at 3:34 pm
      Permalink

      Hi Ankur, Can you make your question little more clear. If the employee reassigns the policy to some other individual the employer-employee contract will become void and it will no longer be available for benefits of E-E scheme.

      Reply

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