Nitin Mehta, Chief Distribution Officer - Partnership Distribution and Head of Marketing at Bharti AXA Life Insurance.
Credit: Bharti AXA Life Insurance
Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
The insurance sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping its fingers crossed regarding their expectations from the government's most important financial document of the year.
Nitin Mehta, Chief Distribution Officer - Partnership Distribution and Head of Marketing at Bharti AXA Life Insurance says--
"With an aim to achieve ‘Insurance for all’ by 2045, the upcoming 2025 Union Budget holds significant promise for the life insurance sector. Few key expectations revolve around:
1) Enhanced Tax Benefits:
-- Separate Tax Benefits for Life Insurance Premiums: Currently, life insurance premiums fall under Section 80C of the Income Tax Act, which has a combined limit. There can be separate tax benefits / deduction limit specifically for life insurance premiums. This will incentivize long-term savings and encourage individuals to secure their future.
2) GST Reforms:
-- Reduced GST Rates: The current GST rate on life insurance premiums is 18%. Any reduction in this rate will significantly lower the cost of insurance, thereby making life insurance more affordable and accessible for buyers.
-- Simplified GST Compliance: Streamlining GST compliance procedures will help to reduce administrative burdens on insurance companies. This can allow them to focus on product innovation and customer service.
These measures can immensely boost the growth of the life insurance sector and also contribute to financial inclusion by making life insurance more accessible to a wider segment of the population. This can further individuals to build a secure financial future through life insurance."
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.