An employee receives a sum under a Keyman insurance policy taken out by the employer, including the bonus allocated on it. How does the Income-tax Act, 2025 classify the amount in the employee’s…

Section 18(1)(c)(iii) of the Income-tax Act, 2025 includes any sum received under a Keyman insurance policy, including bonus, in profits in lieu of salary. The exclusion in Schedule II for sums received under a life insurance policy does not extend to a Keyman policy, and such a sum is income from other sources only where the recipient is not an employee.