Union Budget 2011 Expectations - HDFC Life insurance

Union Budget 2011 Expectations - HDFC Life insurance ; Life Insurance industry is expecting separate limit of Rs.50,000/-for the life insurance premium, apart from the deduction u/s 80C of Rs.1 lac and Rs.20,000/- for Infrastructure bonds. Availability of separate tax exemption for life Insurance premium will boost the Life insurance industry, as the tax payers will look at it as a tax savings device. This will ensure better insurance penetration in the country. Currently, the total tax savings such as PPF, Life insurance premiums, PF contributions, National Savings Certificates etc are covered under Rs.1 lakh limit u/s 80C of the Income tax Act.

EEE’ regime will continue atleast upto the new Direct Tax Code. Life Insurance Industry is expecting some clarity about the applicability of Minimum Alternate Tax (MAT) for the Life insurance Companies.

The time limit of 8 years is available for carry forward of tax losses, the same should be relaxed for Life Insurance Companies, since this Industry has a very long gestation period of 8 to 10 years.

Threshold limits for tax audit which is currently Rs.60 lacs & Rs.15 lacs is expected to be raised upto Rs.1 crore and Rs.25 lacs for businesses and professionals respectively.

The Corporate tax rates are expected to remain the same. Surcharge on the corporate tax is expected to be removed. Download HDFCLife Budgetexpectation_220211
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