May 25, 2020 | Investopaper
The Insurance Board (Beema Samiti) has suggested to provide tax exemption on life insurance up to Rs 50,000. In the suggestion given by the Insurance Board for the upcoming budget, it has been said that increasing the tax exemption limit will encourage the citizens to insure. Currently, life insurance up to Rs 25,000 is tax deductible.
The Insurance Board has also demanded that the insurance agent should be allowed to show expenses while working as the insurance agent. At present, according to the policy of the government, individual tax has to be paid from the commission received by the agent. But the agent is not allowed to deduct the cost incurred while insuring.
Agricultural And Micro Insurance
The board has also suggested to continue the subsidy being given by the government for agricultural insurance. At present, the government subsidizes 75 percent of the insurance fee in agricultural insurance. Farmers pay only 25 percent of the total insurance fee. The board has demanded to provide subsidy on micro insurance at the same insurance fee as in agriculture. Currently, the government does not provide any subsidy for micro insurance. Beema Samiti has also urged to make policy arrangements to encourage property insurance. The board has requested to provide a certain percentage tax exemption while insuring the property. Currently, the local level has been raising property tax.
The Insurance Board is of the view that such insurance will increase when the central government arranges tax exemption on property insurance in coordination with the local level. It also requested to insure all government properties (houses). At present, no government property is insured. Singha Durbar, a major government body at the central level, also has no insurance. Therefore, the board has suggested to insure government property. In the previous budget statement, it was announced to insure all government houses but it has not been implemented.
Read Related Contents