Tinkering with insurance

The tax sops being planned for the life insurance sector, as reported by Mint on Monday, spell confusion on the government’s part. The insurance industry pushed for them and got three things in return: a reduction in the service tax levied on the premium; keeping tax benefits in place for existing policies against future tax changes; and a likely increase in tax breaks aimed at pension products over the Rs1 lakh limit that investors get under section 80C of the Income-Tax Act.

Read Full Story>>