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New Insurance Buyers to Get Incentives in Budget 2023? What We Know

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Last Updated: December 28, 2022, 12:01 IST

It is also suggested that insurance premiums can be exempted from Section 80C of the income tax.

It is also suggested that insurance premiums can be exempted from Section 80C of the income tax.

Women customers may be eligible for greater tax exemptions on insurance premiums under the budget, as well as a waiver of the first premium.

The year 2022 was a year of regulatory adjustments, innovation, and the emergence of insurtech and health-based intermediaries for the general insurance sector. As of 2023, the main themes will be embedded and sachetized insurance, with the development being driven by technology platforms and health insurance.

According to Rakesh Jain, CEO of Reliance General Insurance, the non-life insurance market in India had a 15% rise over the previous 11 months, mostly due to the health, motor, and crop insurance sectors and helped by the use of modern tools and technological fusion. A source from the finance ministry has informed that officials aim to promote citizens towards insurance. Hence, new insurance buyers are likely to get an incentive in the budget 2023.

It is also suggested that insurance premiums can be exempted from Section 80C of the income tax. Women customers may be eligible for greater tax exemptions on insurance premiums under the budget, as well as a waiver of the first premium, according to sources. Incentives on insurance premiums, in addition to Section 80C of the Income Tax Act, are being discussed.

For incentives on insurance, a new provision independent of Section 80C can be introduced. The opinions expressed by the insurance sector are being taken into consideration by the finance ministry. Sources claim that there is also an effort to rationalise the GST rates applied to insurance premiums.

The Income Tax Act’s Section 80C allows taxpayers to defer paying taxes on income up to Rs. 1.50 lakh per year. Anyone can benefit from tax exemption on investments and expenses up to Rs 1.5 lakh annually through this. This tax break is provided as a tax deduction, meaning that you can subtract and exclude Rs. 1.50 lakh from your yearly gross income. The remainder of the income must be taxed following their tax bracket.

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