According to IRDA, life insurance is a long-term product and hence it has to be given separate tax exemption limit
The finance ministry is planning to introduce a separate tax exemption limit on life insurance plans. The IRDA (Insurance Regulatory and Development Authority) has also supported this proposal, according to media reports.
After holding discussions with the insurance industry, the finance ministry suggested that a new limit be introduced, the reports added.
According to IRDA, life insurance is a long-term product and hence it has to be given separate tax exemption limit. From a long time, life insurers have been suggesting a separate income tax exemption limit of Rs. 50,000 for premiums. So, the latest recommendation by the finance ministry will cheer them as it will help promote insurance plans as tax-saving products.
