Opportunity to Help Your HNI Clients Save Taxes

[N.K Associate]

Dear Professionals,

If you are advising HNI clients who are currently paying significant taxes, we would like to connect with you.

We have structured tax planning opportunities through Keyman Insurance (Business Insurance) that can help eligible clients optimize their tax liabilities in a compliant manner.

Eligibility Criteria (Indicative):
• Businesses with net profit of ₹1 crore or more, or
• Clients paying income tax of ₹40–50 lakhs or more annually

If you have such clients and would like to explore how this structure can help them legally reduce their tax burden, we would be happy to discuss the plan in detail.

Please feel free to connect with us for further discussion.

Thank you.

Best Regards,
Keshav Khunteta
8058029595
NK Associates

Virus-free.www.avast.com

[N.K Associate]

Hello Anand,

Please find the details below-

 * Insurer and Exact Product Name:

 TATA AIA  FG Secure + ulip

 * Product Style: It is an investment-linked/endowment style solution, specifically identified as ULIP solutions with potential for exponential wealth creation. While we can also go with pure term plan as well.

 * Scheme A Roles: The employer acts as the proposer and premium payor, while the employee is the life assured.

Taxation and Legal Support

 * Premium Allowability: Premiums qualify as deductible business expenses under Section 37(1) of the Income Tax Act. This is further supported by CBDT Circular 762.

 * Taxability at Maturity: Maturity proceeds are taxable in the hands of the employer. We also suggest that the client may opt for a policy loan, where the loan repayment and interest can be settled from the policy’s maturity amount, so the client does not have to pay anything from their own pocket.

 * Taxability at Death Claim: The claim amount is initially taxable for the employer but is then transferred to the employee’s nominee as an ex-gratia payment, making it tax-free for the family.

 * Taxability at Assignment: The employer retains initial control, but the policy may later be assigned/transferred to the employee.

Accounting and Beneficial Interest

 * Accounting Treatment of Keyman Insurance Policy

1. Payment of Premium-

When the company pays the insurance premium, it is treated as a business expense.

Journal Entry:Keyman Insurance Premium A/c Dr  To Bank A/c

At the end of the year, the premium is transferred to Profit & Loss Account.

Profit & Loss A/c Dr  To Keyman Insurance Premium A/c

Thus, the premium is charged to P&L and no asset is created in the balance sheet.

Premium paid → Business Expense• Policy claim / surrender / assignment → Taxable income for the company• If assigned to employee → Treated as employee compensation/perquisite

 * Beneficial Interest: While the employer maintains initial control, the policy benefits are strategically assigned to the employee, serving as a "Golden Handcuff" retention tool.

Scrutiny-Safe Case Studies (Anonymized)

 * Tax Optimization Study: A corporation utilized Scheme A to pay a ₹50 lakh annual premium. By deducting this under Section 37(1), they achieved a net cost of only ₹35 lakh after tax savings, while providing the employee with full coverage.

 * Liquidity Management Study: A firm used the policy loan facility available under Scheme A to access up to 80% of the surrender value. This provided liquidity for business expansion without disrupting the long-term compounding of the employee's wealth.

 * Retention Strategy Study: An organization implemented Scheme A for key personnel to create a "Golden Handcuff" effect. This resulted in significantly enhanced employee retention rates and strengthened the corporate employer brand.

In case you have any further queries, please feel free to get in touch.

Thanks

Keshav Khunteta 

8058029595

On Sat, 14 Mar 2026, 5:09 pm Anand Agrawal, <anand....@anandagrawalcs.com> wrote:

Dear Sir,

May please provide the following information:

• insurer name and exact product name
• whether it is pure term or investment-linked/endowment style
• note on allowability of premium with section/circular support
• taxability at surrender / maturity / assignment / receipt
• accounting treatment in books
• who bears beneficial interest
• 3 recent scrutiny-safe case studies, with facts anonymized

Regards 

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