LIC paid by the employer is it a taxable benefit for employees

Ask the Community HR
1

Hi Team,

We are planning to add LIC for its employees. Kindly assist us in the below mentioned points.

  1. Is it a taxable benefit for LIC paid by the employer, and is it a part of the regular tax system
  2. Can we deduct any TDS (Tax deducted at source) from the employee’s salary
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2

Hi Vinay,

Could you please make me little clear on LIC.Are you talking about Gratuity formed trust in LIC or Medical insurance ??

After that I may able share my opinion accordingly.

Regards
Arpana

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3

Hi Arpana,

It’s term life insurance coverage for employees

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