In this article we will discuss about this issue. In the case of refund of excess premium deducted from the salary of employees for Postal Life Insurance (PLI), there is no specific ruling but rather a procedural approach to handle the refund. Here is a summary of the steps involved:
- Identify Excess Recovery:
- Determine the excess PLI premium deducted by reviewing pay slips or pay statements for the relevant period.
- Document Preparation:
- Prepare an office note detailing the excess PLI premium recovered.
- Attach the pay slips or pay statements that show the excess deduction.
- Verify Policy and General Ledger:
- Ensure that all relevant policies’ CSV (Cash Surrender Value) are posted.
- Check if an amount equivalent to the excess premium is reflected in the PLI recovery General Ledger (GL).
- Include the GL report with the office note.
- Application to Drawing and Disbursing Officer (DDO):
- Submit an application to the DDO requesting a refund of the excess premium.
- Refund Process:
- Only the premium amount will be refunded; Goods and Services Tax (GST) is not refunded.
- If there was a wrong deduction by the DDO, the loss incurred will be compensated to the employee.
- If the GST return has not been filed, the GST amount should also be refunded.
In summary, the refund process involves careful documentation and verification of the excess deductions, followed by a formal request to the DDO, ensuring compliance with the outlined procedures.