Need Tally
for Clients?

Contact Us! Here

  Tally Auditor

License (Renewal)
  Tally Gold

License Renewal

  Tally Silver

License Renewal
  Tally Silver

New Licence
  Tally Gold

New Licence
 
Open DEMAT Account with in 24 Hrs and start investing now!
« Direct Tax »
Open DEMAT Account in 24 hrs
 Income tax exemption: 4 financial instruments you can still invest into before March 31
 CBDT drops small tax demands but not TCS, TDS claims
 ITR Refund: Awaiting money from Income Tax? Here's why you have not yet received your amount
 Income Tax Notice: What to do if you receive a Section 143 (1) notice from taxman?
 Average tax return processing time cut to 10 days: CBDT
 7 types of Income Tax Notice ITR filers may receive for AY 2023-24
 ITR filing: Do these advance preparations before filing your income tax return
 What are the strategies to maximize tax refunds after submitting an income tax return (ITR)?
 ITR filing: Tax rules on income from house property that your should know
 CBDT likely to issue rules on angel tax next week
 Pension Taxation: Everything you need to know for ITR filing

Insurance sector hopes for relook at DTC proposal, FDI ceiling
March, 14th 2012

The insurance industry's expectations from this year's Budget include an overall re-look at the proposals of the Direct Tax Code, waiver of service tax and an increase in the ceiling on foreign direct investment.

Although implementation of the DTC has been deferred for a year, the fear is that some of its proposals may be included in this year's Budget.

According to Mr Amitabh Chaudhry, Managing Director and CEO, HDFC Life, most of the DTC recommendations are negative for the insurance industry. So the real concern is that the Budget may pick up elements of the DTC and implement them.

However, with the Standing Committee on Finance recommending that sum assured should be 10 times the annual premium (instead of 20 times as recommended by the DTC), companies are hopeful that at least this will be implemented.

Another DTC proposal, to tax customers on maturity of the policy or EET (Exempt Exempt Tax) method would also have an adverse impact on the life insurance industry, said Mr V. Srinivasan, Chief Financial Officer, Bharti AXA Life Insurance.

The demand, therefore, is to retain EEE so that the final return in the hands of policyholders at the time of maturity is not taxed.

Companies would also like to see a separate tax exemption limit of Rs 2 lakh for long-term saving instruments such as life insurance This will promote long term savings habit among investors,'' said Mr Rajesh Sud, CEO and MD, Max New York Life Insurance.

A long pending demand is raising the ceiling on FDI in insurance to 49 per cent. Many insurance companies would like to invite foreign partners to raise their stake. Raising the cap to 49 per cent will provide enough incentive to foreign companies to invest in Indian insurance sector. This will attract required capital in the industry and help the sector expand much faster,'' said Dr. Damien Marmion, Chief Executive, Max Bupa Health Insurance.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2024 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting