Budget 2022: Insurance companies demand increase in investment limit under 80C, reduce GST on health products

Life insurance is a proxy of social security in the event of a person’s death as well as survival. Hence, there is a need to amend the exemption limit of 1.5 lakh under section 80C.

Demand for separate section for deduction of tax on payment of insurance premium.

insurance companies upcoming general budget (Budget 2022, I am demanding a separate exemption of Rs 1 lakh on the payment of insurance premium under Section 80C of the Income Tax Act so that more people can be brought under the purview of insurance. Insurance companies also want Health Insurance) on products Goods and Services Tax (GST) The current 18 per cent rate should be reduced to 5 per cent so that such products can be more affordable to the common people. Finance Minister Nirmala Sitharaman (Finance Minister Nirmala Sitharaman) She will present the Union Budget for 2022-23 on February 1.

Tarun Rastogi, Chief Financial Officer, Canara HSBC OBC Life Insurance said, “It has been a long-standing expectation from the policy makers of the industry to encourage people to take life insurance under Section 80C. A separate exemption of at least one lakh rupees should be given on the payment of insurance premium under the At present, all financial products are covered under Section (80C) of IT Deduction and the limit is Rs 1,50,000.

Separate section for tax deduction on payment of insurance premium

Subrajit Mukhopadhyay, Executive Director, Edelweiss Tokio Life Insurance, said, “We expect the Budget to consider creating a separate section for tax deduction on payment of premiums for life insurance.

Vignesh Shahane, managing director and chief executive officer of Ageas Federal Life Insurance, said Section 80C currently covers several investments including Public Provident Fund (PPF), Equity Linked Savings Scheme (ELSS) and National Savings Certificate (NSC). Options are included. Considering the current scenario, a separate section for term policies would be good.

Chinmay Bade, Senior VP and Head Products & Development, Future Generali India Life Insurance said that life insurance is a proxy of social security in the event of death as well as survival of an individual. Hence, there is a need to amend the exemption limit of 1.5 lakh under section 80C,

According to the annual report 2020-21 of the insurance regulator IRDAI, the rate of insurance in the country is 4.2 percent of the GDP, while globally this figure is 7.4 percent. By March 2021, the rate of taking non-life insurance was barely one per cent.

GST to be deducted on health insurance premium

Rupam Asthana, CEO and Whole Time Director, Liberty General Insurance said that due to the uncertainty arising out of the COVID-19 pandemic, health insurance has become an everyday necessity to protect oneself from the uncertainties and is more relevant than ever. Therefore, the government should consider a drastic reduction in the GST applicable on health insurance premium, which is currently charged at 18 per cent.

with PTI input

Also read- Budget 2022: Need to give more money in the hands of poor, government should announce ECLGS for shop-salon people

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