Question

How is the premium paid by the employer treated for tax purposes in employer-employee scheme?

a.

The premium paid by the employer is held as deductible business expenses and treated as perks in the hands of the employee.

b.

The premium paid by the employer is treated as a perquisite and taxed to the employee.

c.

The premium paid by the employer is fully taxable to the employer.

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (a).The premium paid by the employer is held as deductible business expenses and treated as perks in the hands of the employee. Explanation:The premium paid by the employer is held as deductible business expenses and treated as perks in the hands of the employee in employer-employee scheme.

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Q. How is the premium paid by the employer treated for tax purposes in employer-employee scheme?
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