Budget 2020: Will Exemption Limit Increase on Policy Premium? Insurance Industry Demanded this from Finance Minister

The country's general budget is going to be presented on 1 February. The insurance industry has high expectations from this budget.
Budget 2020: Will Exemption Limit Increase on Policy Premium? Insurance Industry Demanded this from Finance Minister

With the general budget being presented on February 1, people of every category have expectations. If the middle class is expecting a tax cut, the emphasis is on protecting and empowering the women class. Similarly, relief is being sought from other sectors including real estate, auto industry.

In this series, the insurance industry has now demanded a separate deduction provision for insurance in personal income tax. Apart from this, the emphasis is on increasing the scope of the rebate on the insurance policy premium up to the existing limit of Rs 1.50 lakh.

Life insurance council secretary SN Bhattacharya said, "Separate provision should be made for deduction of income tax on premium paid for individual life insurance policies." According to SN Bhattacharya, if no separate deduction is given If it is under Section 80C, the existing limit of Rs 1.5 lakh should be increased to Rs 3 lakh. In this, the deduction on the insurance premium should be increased.

At the same time, Kamlesh Rao, Chief Executive Officer (CEO) of Aditya Birla Sun Life Insurance, has demanded a separate deduction of Rs 50,000 in income tax for those taking an insurance policy for the first time. Kamlesh Rao believes that the additional limit of Rs 50,000 for those taking a policy for pure security (term) will boost the life insurance sector.

In addition, the General Insurance Council representing the non-life insurance sector has demanded the government to reduce the GST rate on the policy from 18 per cent to 12 per cent. Council General Secretary MN Sharma said that insurance has now become a necessity. The GST rate on general insurance products should be reduced to encourage risk management among the people.

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