Irda For Waiver Of 12.5% Tax On Actuarial Surplus

The Insurance Regulatory and Development Authority (Irda) has recommended the withdrawal of 12.5 per cent tax levied on actuarial surplus of life insurers. It has instead proposed that the surplus in the policyholder fund should either be exempted from tax or taxed at 3-5 per cent.

The surplus in the shareholder fund should be taxed at the prevailing corporate tax rate, the insurance regulator has proposed.