Last year’s Union Budget was a step forward towards achieving the development agenda set out by the Government. Between the last year’s Budget and the forthcoming one, what remains unchanged is the fact that the impetus for generating growth will have to come from the domestic economy. The Government will have to continue playing the role of a catalyst to give a boost to the economy.
Widening of the tax base should be given priority in the forthcoming Budget that should be aimed by simplifying the tax law. This will see a percentage growth in individual tax payers/ returns filed.
Risk managementIn India, personal risk management has very low understanding, focus and priority. It is imperative to take steps in ensuring individual security.
The schemes of PMJJBY and PMJSY were launched by the Government to provide an impetus for self-reliance through insurance.
It is recommended that the Government should increase the limit of deduction for life insurance premium and other risk management expenses by creating a separate limit for deductibility of these premium.
Broadening the tax limit for the investment in tools like life-insurance, will encourage lower and middle income segments to provide for their security.
In India, it is expected nearly 32.3 crore people will be above 60 years by 2050.
We expect contribution to pension policies of life insurance companies to be given similar status as the contribution to NPS, since both these products serve the same objective: help individuals save for their retirement.
Also, at present, the annuity pay outs on the maturity of these pension funds is treated as income and is taxed.
This should be exempted from tax under section 10.
(The writer is MD & CEO IndiaFirst Life Insurance)