Life Insurance Council has sought a separate tax exemption limit of Rs 1,00,000 for life and health insurance premiums
Mumbai: Life insurance companies have urged the government to have a separate tax exemption limit for insurance premium.
The Life Insurance Council, an industry forum, has proposed tax exemption on premium of Rs 1,20,000 paid annually for life insurance and health insurance, according to a report in the Financial Express on Wednesday.
The council, in its wish-list for the 2011-12 budget submitted recently, said there should be a separate tax exemption limit under section 80C of the Income Tax Act for long-term savings like insurance.
Under the draft Direct Tax Code (DTC), it is proposed to exempt Rs 50,000 of insurance premium and tuition fees. The council also said tuition fees should not be clubbed with insurance premium as there is no correlation between the two.