Value of LIP/Deferred Annuity Premium paid/payable by the employer under Income Tax Act, 1961: Section 17(2)(v)

By | June 1, 2015

Any amount paid by the employer other than a recognized provident fund or an approved superannuation fund or any other fund established under Miscellaneous provisions Act, 1948 or 1952 either directly or through a fund scheme to assure the life of the Assessee or as a contract of annuity, then that would be treated as a perquisite in the hands of the employee. As it is a benefit for the employee, it will be taxable in the hands of the employee.

Reference:

As Per Section 17(2)(v), Of the Income Tax Act, 1961-

17. For the purposes of sections 15 and 16 and of this section,—

(2) “Perquisite” includes—

(v) any sum payable by the employer, whether directly or through a fund, other than a recognised provident fund or an approved superannuation fund [or a Deposit-linked Insurance Fund established under section 3G of the Coal Mines Provident Fund and Miscellaneous Provisions Act, 1948 (46 of 1948), or, as the case may be, section 6C of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952)], to effect an assurance on the life of the assessee or to effect a contract for an annuity.

 

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