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Our Bureau

Hyderabad , Feb. 14

LIFE insurance industry should not be subjected to the Exempt-Exempt-Tax (EET) form of taxation and the existing regime of taxation should be retained, the Managing Director and CEO of Max New York Life, Mr Gary R. Bennett, has urged the Union Finance Ministry.

Further, he said, the tax treatment in respect of the life insurance policies should be restored to the pre-April 2003 period wherein the proceeds of policy be fully exempt from tax and deduction on premiums be allowed within the overall limit of Section 80C without regard to limit of premiums up to 20 per cent of sum assured.

According to him, the contemplated EET tax regime would be discriminatory against the life insurance sector as compared to others in the financial services sector such as mutual funds.

Opposing the levy of fringe benefit tax (FBT) on superannuation contributions, Mr Bennett said in a statement that superannuation contribution is not an item of present income for the employees and is a crucial part of retirement savings.

It is very different from all the other so called `benefits' that are sought to be captured by FBT.

According to him, `group superannuation/pension' schemes are extremely cost-effective as expenses are very low.

More Stories on : Life Insurance | Income Tax

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