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Life insurance industry welcomes tax waivers
Private life insurance players welcomed the Union Budget with the new consolidated provision of tax deduction up to Rs one lakh for various saving instruments.
Private life insurance players on Monday welcomed the Union Budget with the new consolidated provision of tax deduction up to Rs one lakh for various saving instruments.
Kotak Mahindra Old Mutual Life Insurance Ltd Managing Director Gaurang Shah said continuation of the Section 10 (10) (d) benefit exempting the maturity and death benefit received by an individual has been a major relief for the nascent sector, which generates long-term resources.
A new consolidated provision of tax deduction up to Rs one lakh for various savings instruments is a good decision, he said.
Sun Life Insurance Company Ltd CFO Anil Jhala said the move to promote and incentivise the long term savings by introducing the availability of deduction of Rs one lakh is a welcome step.
Bajaj Allianz Life Insurance Chief Executive Officer and Country Manager Allainz Sam Ghosh said the budget has been positive and has a strong focus on insurance.
However, removal of Section 88 benefit, which was primarily for long term savings in insurance, would impact the flow of investments to life insurance, Ghosh said.
The welcome measure of Rs one lakh consolidated tax deduction for individual income tax on account of savings gives the consumer the option of long-term and short-term instruments, he said.
With the new tax slabs, there would be effective lowering of tax for individuals and we hope to channalise some of these savings to the life insurance industry, he added.
