Gupta said that even though the upcoming budget is a Vote on Account, the insurance sector sees continuation of the infra capex and self-dependency themes.
New Delhi: As Finance Minister Nirmala Sitharaman is all set to present the Interim Budget 2024 in Parliament on February 1, several sectors have pinned high hopes from the upcoming Budget.
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The life insurance industry hopes for a distinct tax deduction limit, specifically for life insurance, with a special emphasis on the term insurance category, apart from the existing 80C provisions.
“This would serve as an incentive for individuals to invest in life insurance policies and promote a sense of long-term security. There could be an opportunity to also re-look at the taxation framework surrounding Pension and Annuity Products. An extension of the current Rs 50,000 tax exemption, applicable to the National Pension Scheme under Section 80CCD(1B), to encompass pension and annuity plans offered by insurance companies, could make retirement planning more attractive and accessible, encouraging individuals to opt for insurance-based pension and annuity products. These changes would also create a more level playing field, fostering healthy competition within the industry,” Pankaj Gupta, MD & CEO, Pramerica Life Insurance said.
Gupta said that even though the upcoming budget is a Vote on Account, the insurance sector sees continuation of the infra capex and self-dependency themes.
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“Looking at the economy more holistically, the enduring commitment to the ‘Make In India’ initiative of the government will help increase capital expenditure and also help improve long-term productivity. Capex as a part of total spending has risen from 12% in FY20 to 22% in FY24. With private capex recovery still in the incipient stage, the government is likely to persist in its focus on capex. We are expecting a year-on-year growth of 20-25% in FY25,” Gupta added.
