Highlights

  • Analysts and brokerage firms say that the Budget dealt a blow to the life insurance sector
  • Budget 2023 removed tax exemptions on insurance policy payouts where the policy premium is more than Rs 5 lakh

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Insurance industry body to meet FM Sitharaman to seek relaxation on taxation: Report

Shares of most life insurance companies have been under pressure after the Budget 2023 announcements regarding limiting income tax exemption from the proceeds of insurance policies

Insurance industry body to meet FM Sitharaman to seek relaxation on taxation: Report

The insurance industry was left disappointed with Budget 2023. In fact one of the budget proposals, limiting exemptions on high value insurance policies, came as a big blow to the industry.

As per reports, the industry body will meet Finance Minister Nirmala Sitharaman to seek a relaxation on taxation on insurance.

According to CNBC-TV18, the industry body seeks raising the limit on premium for taxation to ₹10 lakh/year vs budget announcement of ₹5 lakh/year.

Shares of most life insurance companies have been under pressure after the Budget 2023 announcement, which said that the payout of life insurance policies where the premium was above Rs 5 lakh, would be taxed.

Frequently Asked Questions

The insurance industry was disappointed with Budget 2023 due to a proposal that limited exemptions on high value insurance policies, specifically affecting policies with premiums above Rs 5 lakh.

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