Kathmandu. Life insurers in India have urged the government to double the tax-free limit on insurance plans to Rs 5 lakh (Rs 8 lakh). According to the international news agency Reuters, at present, insurance plans affiliated to market units in India have an annual fee of Indian Rupees. It has been requested to double this limit as the tax is levied on returns up to Rs 2,50,000. <\/p>\n
In February 2023, the new tax threshold was implemented on all insurance plans except unit-linked insurance plans. These insurance products are linked to investments in market-linked funds. After this change, flows into non-entity affiliated insurance plans increased by only 2% in 2024 and 5% in 2025, respectively. This is a significant slowdown compared to the 13% and 18% growth recorded in the previous two years. <\/p>\n
In India, the tax exemption limits on life insurance policies vary depending on the annual premium payment. These tax exemption limits are not applied to the annual income tax assessment, but to maturity benefits or other types of benefits that the insured receives. Tax exemption limits as per the latest provision: <\/p>\n
For policies issued after April 1, 2012, the annual premium should not exceed 10% of the basic sum assured. <\/p>\n
For policies issued before April 1, 2012, the annual sum insured should not exceed 20% of the basic sum assured. <\/p>\n
For market unit linked insurance policies issued after February 1, 2021, the annual premium should not exceed Rs 2.5 lakh. <\/p>\n
For policies issued after April 1, 2023, the maturity amount is waived only if the annual premium paid in the previous year does not exceed Rs 5 lakh. <\/p>\n
These limitations encourage long-term financial planning. In India, the amount of insurance is paid in installments, but the payment of death claim is always tax-free.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Life insurers in India have urged the government to double the tax-free limit on insurance plans to Rs 5 lakh (Rs 8 lakh). According to the international news agency Reuters, at present, insurance plans affiliated to market units in India have an annual fee of Indian Rupees. It has been requested to double this […]<\/p>\n","protected":false},"author":5,"featured_media":280800,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45044,45159],"tags":[],"class_list":["post-302470","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news-en","category-news-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302470","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=302470"}],"version-history":[{"count":1,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302470\/revisions"}],"predecessor-version":[{"id":302471,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/302470\/revisions\/302471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/280800"}],"wp:attachment":[{"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=302470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=302470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=302470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}