Section 30 — Deduction on certain premium
Old Act equivalent: Section 36(1)(d),(d)(i) of IT Act 1961 Sub-part: D.—Profits and gains of business or profession
Statutory Text
-
The following sums shall be allowed as deduction in computing income
chargeable under section 26, being premium paid:—
(a) by any assessee in respect of insurance against risk of damage or destruc tion of stocks or stores used for the purposes of business or profession;
(b) by a federal milk co-operative society to effect or to keep in force an insurance on the life of the cattle owned by a member of a co-operative society, being a primary society engaged in supplying milk raised by its members to such federal milk co-operative society;
(c) by the assessee as an employer, through any mode of payment other than cash, to effect or to keep in force an insurance on the health of its employees under a scheme framed in this behalf by—
(i) the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972) and approved by the Central Government; or
(ii) any other insurer and approved by the Insurance Regulatory and Development Authority established under section 3(1) of the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999). Deduction for bad debt and provision for bad and doubtful debt.
Sub-sections
Single section - no sub-sections.
Provisos
None.
Explanations
None.
Tables
None.
Key Structure
- Applies to: All assessees with business or professional income.
- Scope: Deduction for premium paid on insurance of stocks, stores, plant, machinery and furniture.
- Conditions: Premium must relate to assets used for business; keyman insurance premium deductible.
Cross-References
- Section 3
- Section 9
- Section 26 - Income under head Profits and gains of business or profession
Amendment Notes
None noted from the extracted pages.