Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: empanelment :: VAT RATES :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT Audit :: ACCOUNTING STANDARDS :: TDS
 
 
« General »
 Accounting relief for IndAS companies
 How you can reduce your tax to zero if you have income within Rs 10 lakh
 NRIs’ overseas bank info needed only for tax refund
 Non-performance: I-T dept transfers 245 commissioners
 Income Tax efiling: Tax implications resulting from clubbing of income
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd
  GST: How companies are gaming the system
 Goods And Services Tax transparency: Elimination of added taxes to boost investment in realty
 In a first, Income Tax department to charge govt official under new benami law
 Income Tax Return Filing: 10 common mistakes people make while filing return of income
 Income Tax efiling: A few essential facts for senior citizens to keep in mind

Insurers want premium on insuring home, household property to be tax deductible
February, 26th 2016

Allowing deduction of premium paid by individuals on insuring their properties and clarity on legal position on non-taxability of technical reserves form part of the wishlist of the non-life insurance industry, said a top official of the industry body.

With foreign direct investment (FDI) in insurance sector hiked to 49 percent and the sectoral regulator coming out with regulations in sync with amended laws, the budget wishlist for the insurers has come down.
Allow deduction of premium paid by individuals on insuring their properties and provide clarity on legal position on non-taxability of technical reserves, they say.

"In order to increase penetration of property insurance and to reduce the government's outgo towards compensation, the premium paid towards insuring them against natural perils should be tax deductible," R. Chandrasekaran, secretary general, General Insurance Counil of India, told IANS.

He said very negligible percentage of households take a policy to cover their movable and immovable properties against natural disasters.

"If the government allows deduction of insurance premium paid to by an insurance policy against natural perils, then there will be a spur in growth," Chandrasekaran said.

"While the government will see an increase in its revenue as the policies are subject to service tax, net-to-net the loss of tax revenue will be very negligible," he said.

"On the other hand, the wealth of the nation will get protected and the government can also save on compensation amount paid to victims who lose their properties to a natural disaster," he added.

The industry also expects the government to give legal clarity that technical reserves provided by the insurers as prescribed by the Insurance Regulatory and Development Authority of India (IRDAI) should be tax exempt.
"While the position is clear, in many cases due to interpretation issues the companies have to spend their time and efforts with taxmen to clarify. If a clear legal seal is given to the tax treatment of technical reserves, then it will be better," Chandrasekaran said.

On the other hand, the life insurance sector expects some enabling laws to provide impetus for growth.

According to Tarun Chugh, managing director and CEO of PNB MetLife India Insurance Company, the government should provide a separate limit for long term savings and pensions under Section 80C of the Income Tax Act.

While the government introduced an additional deduction of Rs.50,000 for contribution to National Pension Scheme in 2015-16, Chugh appeals for a separate sub-limit for insurance under Section 80C.

"The additional leeway in Section 80C will encourage people to buy additional life insurance to protect their family's financial future while getting tax benefit," he said.

Chugh also expects the government to fix the sum assured to five times of the first year premium to be eligible for tax deduction.

"Currently, to avail tax benefits for a life insurance policy under 10(10D), the Sum Assured or Life Cover has to be a minimum of 10 times of the First Year premium," he said.

He also expects better clarity on tax laws relating to computation of profits for insurers and the point of taxation for service tax.

According to Rakesh Nangia, managing partner, Nangia & Co, the tax structure of the National pension Scheme (NPS) should be reviewed.

"The current tax structure is Exempt-Exempt-Tax (on maturity the amount is taxed), which is at a sharp disadvantage to the other major retirement products such as Employees Provident Fund (EPF) and Public Provident Fund (PPF)," Nangia told IANS.

"It is high time that the government removes the anomalies and inconsistencies in the taxation of the NPS and gives it the Exempt-Exempt-Exempt status in order to encourage retirement savings," he added.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Contact Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions