The government should increase the present limit of tax exempt savings from Rs. 1 lakh to Rs. 1.5 lakh, the insurance sector, demands Deepak Sood, MD & CEO, Future Generali India Life Insurance Co Ltd. Here are a list of asks from Mr Sood from the insurance sector
• Encourage domestic savings by providing tax incentives for investment in insurance and pension schemes.
• Increase in present limit of tax exempt savings from Rs. 1 lakh to Rs. 1.5 lakh
• Allow higher FDI limits in Insurance (from 26% to 49%)
• Provide clarity on process and timelines for implementation and roll out of tax schemes like DTC and GST.
• In DTC there should be separate limit for life insurance as well as for pension plans. Also in DTC, life insurance plans should have same treatment as is available presently i.e. premium paid under plans where insurance cover exceeds five times of premium, should be deductible for tax purposes and maturity should also be tax exempt in such cases
• Improve credit off take via access to banking for the people in rural areas by expediting the process of granting new banking licenses
• Separate limit for National Pension Scheme which should include pension products of life insurers
KG Krishnamoorthy Rao, MD & CEO, Future Generali India Insurance Co Ltd, meanwhile says TDS on health insurance claim payments reimbursed to hospitals should be NIL.
More of Rao's wishlist
• Deduction of tax at source, on Reinsurance premium, paid to foreign reinsures, to be maximum at 2%. This is also the practice followed in many other countries.
• TDS on health insurance claim payments reimbursed to hospitals should be NIL as this will help in controlling the rise of health insurance premium and will help increasing penetration of health insurance.
• Service tax may be removed for all insurance policies with premium upto Rs.2500/-
• Cenvat credit to be allowed on payments made to motor repair garages as part of the motor claim settlement