₹1 lakh for insurance premium payment under Section 80 C of the Income Tax Act in the upcoming Union Budget to bring in more people under the ambit of insurance MUMBAI : Insurance companies are seeking a separate deduction limit of ₹1 lakh for insurance premium payment under Section 80 C of the Income Tax Act in the upcoming Union Budget to bring in more people under the ambit of insurance.
The insurers also want reduction in the goods and services tax (GST) rate of 18% currently applied on health insurance products to 5% to make such products more affordable to common people.
Finance Minister Nirmala Sitharaman will present the Union Budget for 2022-23 on February 1. "The industry has long pending expectations from the policy makers for incentivizing people to get life insurance by giving a separate deduction limit of minimum ₹1 lakh for insurance premium payment under Section 80C," Tarun Rustagi Chief Financial Officer Canara HSBC OBC Life Insurance said.
Life insurance is a long-term solution, unlike other financial products which have a shorter investment horizon and are covered under the 80C provision.