Budget 2023: Section 80C limit change to tax-free pension/annuity – what insurers are expecting

With Budget 2023 just a few weeks away, the insurance industry is expecting big announcements in favour of policyholders and the sector.

“Incentives like a GST exemption or a reduced GST slab can further help in meeting the needs of consumers. Pension/annuity proceeds should be made tax-free in the hands of policyholders, or a deduction for the principal component should be allowed. Further, an aggregate deduction of up to Rs 1.75 lakh, for the premiums paid for life and health can be introduced to nurture the eco-system of insurers, insurtechs and consumers,” says Satishwar B, MD and CEO, Aegon Life Insurance.