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Finance ministry looking into life insurers' tax relaxation plea

Officials say Budget's proposal to tax high-value policies of Rs 5 lakh and above is unlikely to have significant impact on the industry

A step-by-step guide to calculating your insurance premium

Subrata Panda Mumbai
The relaxations sought by the life insurance industry on the Budget announcement of taxing high-value policies with premiums of Rs 5 lakh and above are currently under examination by the finance ministry.

Although deliberations are going on with the industry, no final decision has been taken on this matter, a senior finance ministry official said on Monday.

The Centre, in this year’s Budget, proposed to tax proceeds from high-value life insurance policies (non-unit linked plans).

This is to plug the arbitrage that high-net worth individuals (HNIs) are using to get tax-free returns on their high-value insurance policies through Section 10

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First Published: Feb 20 2023 | 7:52 PM IST

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