Hansi:- The central government has directly given a lot of relief to the insurance holders by eliminating GST on insurance products. Earlier, insurance plans were taxed up to 18 percent. That is, on a premium of Rs 50000, Rs 9000 had to be paid as tax, but now the customer will pay only the actual premium amount. That is, the burden on his pocket will be reduced directly.
This was told by Sunil Papneja, a senior investor and insurance expert from Hansi. He said that the government has considered life and health insurance as a means of social security. There was also a demand to remove GST from insurance for a long time.
Which has now been fulfilled by the central government and the public has got direct benefit from it. This will also help a lot in fulfilling the goal of Insurance for All 2047 of the central government. The maturity received on the insurance policy is kept completely tax free as before under section 10 (D).
With this announcement of the Central Government, now the insurance products will become cheaper and people will have more understanding of securing themselves and their families with adequate insurance. This step of the government will take the insurance sector to greater heights. This will encourage the common people to take life and health insurance.