Experts believe there is an urgent need for a different tax exemption category for term insurance. It’s time we declared a dedicated exemption category just for term insurance to fill this gap. To promote the wider adoption of pension products and ensure parity with other investment avenues, we recommend considering a tax-free status for annuity income derived from these pension products. According to him, “a GST rate of 18%” needs to be reconsidered so that the pricing benefit of insurance products reaches the end consumer encouraging wider investment in life insurance products. He also favoured the reduction of GST on term life insurance for wider accessibility of insurance products among people.

Source: Mint January 06, 2024 18:37 UTC