Lower GST rates, revise tax exemption on health premium: Insurance sector airs demands in budget
The insurance industry has sought some reliefs in the budget such as the lowering of GST rates on insurance and the revision of tax exemption on health insurance premium.
They also want tax relief for annuities and the introduction of tax savings retirement security bonds.
The insurance industry has sought some reliefs in the budget such as the lowering of GST rates on insurance and the revision of tax exemption on health insurance premium.
They also want tax relief for annuities and the introduction of tax savings retirement security bonds.
The industry pointed out to four data points — India's insurance penetration has marginally declined to 3.7 per cent in 2023-24 from 4 per cent in 2022-23 and country's medical inflation is estimated at around 14 per cent.
Besides, National Health Accounts estimates out-of--pocket expenditure at around 44.1 per cent of household health expenditure and the World Economic Forum estimates retirement savings gap of India at $85.4 trillion by 2050.
Insurance regulator IRDAI has initiated discussions with the companies on the optimal GST rates and the majority of the industry is in favour of a reduction from 18 per cent to 12 per cent.
There is also a call for a revision of tax exemption on health insurance premium, available under the old tax regime, under section 80D of the Income Tax Act. It has been 10 years after the limit was raised from Rs.15,000 to Rs.25,000 in the union budget of 2015.
