[dropcap]T[/dropcap]he insurance industry is expected to get more tax incentives from the general budget that is going to be presented on February 1, to increase the reach of industry life and general cover among the public. In a pre-budget memorandum, the Life Insurance Council has sought an additional exemption in personal tax or raising the existing limit of premium payments for individual life policies. Significantly, on February 1, Finance Minister Nirmala Sitharaman will present the second general budget of the second term of the Modi government.
Life Insurance Council Secretary SN Bhattacharya said, “We request the Finance Minister that there should be a provision for providing a separate exemption for payment of premium on individual life policies. If the exemption is not given separately, then the limit of 1.5 lakhs under Section 80C should be increased to 3 lakhs.
Kamlesh Rao, managing director and CEO of Aditya Birla Sun Life Insurance said that for the first time life insurance buyers have a separate deduction of 50,000. Rao said that a low GST rate of 12 percent with input tax credit benefits would be beneficial for both policyholders and companies.
The General Insurance Council, representing non-life insurance entrepreneurs, has also demanded the government to reduce the GST from 18 percent to 12 percent.
General MN Sharma, Secretary, General Insurance Council said, ‘Insurance has become a major need. There is a need to reduce the GST rate on general insurance products from 18 percent to 12 percent to promote disaster management among the people.
Non-life entrepreneurs have also demanded a tax rebate of Rs 10,000 in income tax for the insurance of the residential property.