Insurance thumbnail_Knowledge Series 4- Employer Employee concept

Continuing the Knowledge Series- Today we are going to cover the Topic on Employer-Employee investment that comes u/s 37(1)E of Income Tax act and it can help our clients to reduce their Tax Liability(Business Houses).

Today’s Topic: Understanding on Employer-Employee Concept

Under this investment opportunity, we can help our Corporate clients to reduce their Tax Liability(other than 80C) and it can also help them to get a Tax Free amount on maturity.

Please find below the point wise details of the product suggested:

1. In this investment there would be two parties: 1) Proposer(Employer) and 2) Life Assured(Employee).
2. Company will take an investment plan in the name of the Employee and payment will be made through the Companies account.
3. Investment can be of any amount or upto the amount Company wants to take the benefit.
4. The company can claim the Rebate u/s 37(1)E(as an expense), for the amount invested.
5. Proposer/Company can choose any PPT(Tenure of Payment) like 7years, 10years, and more.
6. On completion of the PPT, Company will Assign(transfer the ownership) the policy on the name of the Employee.
7. On Assignment, Employee will make the payment equal to the Surrender Value to the Company and become the owner.
8. And on the maturity, Employee will get all the amount Tax free u/s 10(10)D of Income Tax.

I hope, I made the concept clear and also find attached the PPT on the same.

This is the best time to speak/ guide our clients, if they want to reduce their Tax liability, as we are nearing the F.Y. ending.

In case, if you need any help, please let me know.