Now you will have to pay tax on insurance! Sensations flew away as soon as this announcement of the budget came to the fore

After the budget, the shares of insurance companies fell heavily yesterday. Shares of almost all insurance companies fell by up to 10 per cent.

Till now, the common Indian used to buy an insurance policy for the security of his future, along with this, he also got the benefit of tax saving on buying insurance. Along with tax benefits on insurance premium, tax relief was also available on maturity claims of insurance. But this time the budget has given such a big blow to the common people that the senses of the insurance policy takers have been blown away. In the budget presented by Finance Minister Nirmala Sitharaman on Wednesday, tax will be levied on the maturity amount of insurance policies.

Announcing the budget, Finance Minister Nirmala Sitharaman has said that such life insurance policies which will be after April 1, 2023, will have to pay tax on the maturity of those policies. Here tax will have to be paid on those policies whose annual premium is more than five lakh rupees. However, ULIPs (unit-linked insurance policies) have not been included in this ambit. The thing to keep in mind here is that this tax will be applicable only on the maturity benefit. If an insured person dies, then in that case the existing tax exemption system on the amount received in the death claim will remain intact.

Old policy holders are free from this hassle 

In the budget, Finance Minister Nirmala Sitharaman has made it clear that those who are old policy holders will not have to pay any tax on maturity benefit. But if a person buys the policy after the new financial year i.e. 1 April 2023 and his premium is more than 5 lakhs, then he will have to pay tax.

Shares of insurance companies fell after the budget 

After the budget, the shares of insurance companies fell heavily yesterday. Shares of almost all insurance companies fell by up to 10 per cent. Apart from this, the emphasis on the new tax regime and ignoring the old savings and insurance schemes also did not go down well with the market and insurance broke down in the stock market.