How has Budget impacted life insurance companies?

| Updated on February 20, 2020 Published on February 20, 2020

Find out how the Budget impacted life insurance companies

From expectations of a separate investment window for life insurance policies for the purpose of tax benefits to anticipating higher FDI limit, investors and analysts had pinned hopes on the Budget offering a big push to the insurance sector. Instead, the Budget, by way of introducing a new personal tax regime — lower tax rate sans most exemptions and deductions — and abolishing the dividend distribution tax (DDT), making dividends taxable in the hands of recipients, has rattled investors. In a knee-jerk reaction, the stock of listed life insurance companies fell, notably post-Budget announcements.

While they have recouped some of the losses in the past few days, concerns about the impact of the Budget moves persist.

We break down the impact of the Budget proposals on life insurance companies.

Concept: Radhika Merwin

Animation: Radhika SR

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Published on February 20, 2020