In the last few years, profits of general insurance companies took a hit as a result of severe natural calamities – floods in Tamil Nadu and Jammu & Kashmir and the cyclone Hud-Hud. In order to increase awareness about householder policy and shopkeepers insurance, the general insurance industry has proposed tax exemptions for such policy premiums.
Currently, only premiums paid for life insurance and health insurance are exempted under Section 80C and 80D of Income Tax Act. The general insurance industry believes that if the government provides tax exemptions on householder policy and shopkeepers insurance, it will be beneficial to all.
