Budget 2025 Expectations|Urge the govt to extend tax deduction on life insurance premiums under new tax regime, says Bajaj Allianz Life MD Tarun Chugh

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 the fingers crossed regarding their expectations from the government's most important financial document of the year.

Here's what Tarun Chugh, MD & CEO Bajaj Allianz Life has to say--

"India's economic growth presents immense opportunities for the insurance sector to enhance financial resilience. Anticipated income tax cuts in the upcoming budget could boost disposable income, driving higher life insurance penetration.

With the elderly population (50+) projected to grow by 22% in the next six years, incentivizing pension product is imperative.

Aligning tax deduction of life insurance annuity products with the National Pension Scheme (NPS) and addressing the issue of tax on principal component on annuity products can evolve retirement needs effectively.

We urge the government to introduce separate tax deduction for term insurance and extending the tax deduction on life insurance premium under new tax regime as well.

These measures will empower individuals to build robust financial safety nets and advance the vision of 'Insurance for All by 2047’, thereby fostering long-term financial security and inclusivity."

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.