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Objective
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What is employer-employee
insurance?
*Tax benefits are as per applicable tax legislations and are subject to amendments from time to time
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Benefits
*Tax benefits are as per applicable tax legislations and are subject to amendments from time to time
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Scheme A
• Employer is the applicant and policyholder.
Employer: Employee:
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Scheme A - continued
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Scheme A – FAQ’s
1. In case of death of insured, the sum assured is payable to?
B. Under Scheme A, sum assured is payable to the employer.
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Tax treatment
• Premiums paid by the company are eligible for deduction u/s 37(1) of the
Income Tax Act, 1961.*
*Tax benefits are as per applicable tax legislations and are subject to amendments from time to time
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Documentation and
underwriting
• Application form –
• Letter from the employer on letterhead is required in Tata AIG Life format
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Other aspects
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Scheme B
Employer: Employee:
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Scheme B
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Scheme B- FAQ’s
9. Is the maturity benefit / death benefit taxable in the hands of the employee /
nominee?
A. The maturity benefit / death benefit are tax free. 14
Tax Treatment
• Premiums paid by the company and treated as perquisite in the hands
of the employee are eligible for deduction u/s 37(1) of the Income-tax
Act.*
• Application form –
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Disclaimer
You will appreciate that tax advice given earlier is not binding on the
income-tax authorities and there can be no assurance that the income-
tax authorities will not take a position contrary to that expressed above.
Furthermore, tax laws are subject to change from time to time, which
may adversely affect the advice that we have given. Before using this
opinion, we suggest that you seek professional advice from your tax
consultants / Chartered Accountants.
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