Refund tax collected on old age pension scheme: Panel

Refund tax collected on old age pension scheme: Panel

A parliamentary panel has expressed dismay over the government insurer Life Insurance Corporation of India (LIC) collecting service tax on an old age insurance scheme, and has asked IRDA to see that the taxes amounting to Rs 1.40 crore are reimbursed to the subscribers.

“The committee note that in the Union Budget 2015, the insurance service provided by the way of ‘Varishtha Pension Bima Yojana’ scheme was exempted from service tax. However, as LIC had collected service tax on policy subscriber contribution from August, 2014 to March, 2015…. The committee note that the LIC has refunded Rs 108 crore to the subscribers and Rs1.40 crore is yet to be refunded,” the Public Accounts Committee said in its report tabled in Parliament.

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