See lack of parity in tax treatment of pension products, says Tarun Chugh

By Tarun Chugh

Collectively as an industry, we do see a lack of parity in the tax treatment of pension products of life insurance companies and pension products under National Pension Scheme (NPS). Both the products have similar objective of building long term savings for meeting retirement goals, hence, this disparity should be addressed by the government in the Union Budget 2020. Further, in order to enable customers to see life insurance beyond a tax saving tool and invest in it to fulfil their long term financials goals, the government should either consider a separate deduction section or enhance to limit under Section 80C of Income Tax Act, 1961, to INR 3,00,000, since the current limit of INR 1,50,000 is too low to cater to all the contributions it covers.

(The writer is the MD & CEO of Bajaj Allianz Life)