Insurance premium on health of employees – 36 (1) (ib)

Under section 36 (1) (ib) a deduction can be claimed by a taxpayer if the following conditions are satisfied: • The taxpayer pays premium to keep in force an insurance on the health of employees; • The premium is paid by cheque. However, from the previous year 2007-08, such premium can be paid by any mode other than cash; • Premium is paid under a scheme framed in this behalf by the General Insurance Corporation of India and approved by the Central Government ( or with effect from the assessment year 2007-08, under a scheme approved by IRDA Thus, in view of above, we request you to please ask your employer to take insurance policy in the name of employees, in that way, your employer would save taxes and you would get insurance benefits.

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