The Finance Ministry is considering this issue to promote term insurance and health insurance on the suggestions of the industry. Those who buy insurance for the first time are likely to get a separate incentive.
If you are going to buy a new insurance policy for the first time, then in the budget you can get a big gift for this decision, because the first time insurance buyers are likely to get separate incentives. According to the information received by the sources of CNBC-Awaaz, in the budget (Union Budget 2023), the government can make big announcements to promote term and health insurance.
Apart from section 80C of income tax, exemption can also be given on insurance premium in the upcoming budget. The Finance Ministry is considering this issue to promote term insurance and health insurance on the suggestions of the industry.
Considering Additional Tax Exemption For Women
According to sources, women customers can get additional tax exemption on premium for insurance in the budget, while the first premium can also be waived off for women. In addition to Section 80C of Income Tax, talks are on for incentives on insurance premiums.
In fact, this is being considered to promote insurance and increase its reach. A separate new section can be formed from section 80C for incentive on insurance. The Finance Ministry is considering the suggestions given by the insurance industry. According to sources, there is also a demand to rationalize GST rates on insurance premium.
Under Section 80C of the Income Tax Act, every year the taxpayer gets the facility to save tax on income up to Rs 1.50 lakh. Through this, any person can take advantage of tax exemption on investment and expenses up to Rs 1.5 lakh every year.
You get this tax exemption in the form of tax deduction, that is, you can deduct an income of Rs 1.50 lakh from your total annual income. On the rest of the income, tax will have to be calculated according to their tax slab.
