Budget 2022 expectations: Insurers seek separate income tax deduction limit

Budget 2022 expectations: Providing a separate deduction limit under Section 80C exclusively for life insurance can be highly beneficial as it will improve insurance penetration significantly, say industry insiders. (PTI) — Budget 2022 expectations: Providing a separate deduction limit under Section 80C exclusively for life insurance can be highly beneficial as it will improve insurance penetration significantly, say industry insiders. **(PTI)**

1 min read . Updated: 29 Jan 2022, 01:44 PM IST Asit Manohar

Budget 2022 expectations: Under Section 80D, an individual can claim up to ₹25,000 deduction for self and family on mediclaim premium payment

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Budget 2022 expectations: Union budget 2022 date is fast approaching and various industry insiders are fast forwarding their wish list from Finance Minister Nirmala Sitharaman. This list includes insurance companies as well. In upcoming budget, insurers have demanded from the Narendra Modi government to provide a separate deduction limit under Section 80C of the Income Tax Act for life insurance. They said that it would help increase penetration of insurance in the society.

Speaking on budget 2022 and income tax relief required for public in general; Abhishek Mishra, CEO & Principal officer at Bonanza Insurance Brokers said, "Medical science has advanced significantly over the last few years. However, it has also increased the cost of treatments. Considering this, it is important to hike the mediclaim limit across all categories of taxpayers including senior citizens. With multiple investment options under Section 80C of the Income Tax Act, people with a shorter investment outlook often overlook life insurance, which is a long term investment product. Providing a separate deduction limit under Section 80C exclusively for life insurance can be highly beneficial as it will improve insurance penetration significantly."

Echoing with Abhishek Mishra's views; Rakesh Goyal, Director at Probus Insurance said, "Under Section 80D, an individual can claim up to ₹25,000 deduction for self and family on mediclaim premium payment. This limit should be increased to ₹50,000 to ₹75,000. The surge in medical costs and the higher incidence of critical illnesses make it extremely expensive for lower-income groups. The increase in tax deduction limit can also further help in penetration of health insurance."

The Union Finance Minister Nirmala Sitharaman is going to present her third union budget in the parliament on 1st February 2022.

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