Budget 2023: Tough times ahead for life insurers

The waves of the Union Budget 2023 were fast to hit the market. As soon as the news about the limit on tax exemption from insurance proceeds was in the air, shares of life insurance companies plunged. The finance minister has proposed that high-value life insurance policies (except ULIPs), where the premiums aggregate to more than Rs 5 lakhs, will not be exempted from taxation. This move is to primarily stop the misuse of exemption under Clause (10D) by high net-worth individuals. However, the new limit will only be applicable to insurance polic

This article was originally published on February 02, 2023.