Budget 2019: Reduce GST on life insurance schemes

By Tarun Chugh

The Life Insurance sector is looking at the Finance Ministry for a renewed impetus to increase its penetration across the country. A reduction in the GST rate levied on life insurance products and an increase in the tax deduction limits to include life insurance premiums, will both encourage the population to invest in life insurance to secure their retirement years and life goals.

In addition to the revision in tax slabs that are expected to aid consumption, we also look forward to the possibility of a separate limit deduction for life insurance premium, to enable people to secure their future. We also hope the Finance Ministry considers extending the same tax advantages to individuals buying a pension policy issued by life insurance companies, like that of individuals contributing to NPS.”

Tarun Chugh is MD & CEO of Bajaj Allianz Life Insurance

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