Section 30
Section 30: deduction on certain premium
Section 30 allows three specific categories of insurance premium to be deducted while computing business income - insurance on stock/stores, cattle insurance paid by federal milk co-operative societies, and employee health insurance premium paid by an employer through a non-cash mode under an approved scheme.
What premiums are deductible
The following premiums are deductible in computing income chargeable under section 26:
- Premium paid by any assessee for insurance against risk of damage or destruction of stocks or stores used for the business or profession
- Premium paid by a federal milk co-operative society to insure the life of cattle owned by a member of a primary co-operative society that supplies milk raised by its members to the federal society
- Premium paid by an employer, through any mode other than cash, to insure the health of its employees under a scheme framed by the General Insurance Corporation of India (and approved by the Central Government) or by any other insurer approved by the Insurance Regulatory and Development Authority
Frequently asked questions
Can I deduct insurance premium on my business inventory?
Yes - premium paid for insurance against risk of damage or destruction of stocks or stores used in the business or profession is deductible under Section 30(a).
Is employee health insurance premium deductible if paid in cash?
No - Section 30(c) specifically requires the premium to be paid through a mode other than cash for it to be deductible.
Related sections
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Talk to our tax team about this sectionLast updated 9 September 2026