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