§ 30
Chapter IV — Computation Of Total Income
Deduction on certain premium
Income-tax Act, 2025
Business owners can claim deductions on certain insurance premiums when computing their taxable income. This includes premiums for insurance against damage or destruction of business stocks or stores, life insurance for cattle owned by cooperative society members, and health insurance for employees. Deductions are allowed for premiums paid through non-cash modes under approved schemes.
- Approved schemes include those framed by the General Insurance Corporation of India or other insurers approved by the Insurance Regulatory and Development Authority.
📜 Official text of the section +
30. 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.
Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.