• OPEN AN ACCOUNT
Indian Indices
Nifty
22,326.90 203.25
(0.92%)
Sensex
73,651.35 655.04
( 0.90%)
Bank Nifty
47,124.60 338.65
( 0.72%)
Nifty IT
34,898.15 153.80
( 0.44%)
Global Indices
Nasdaq
16,379.46 -20.06
(-0.12%)
Dow Jones
39,807.37 47.29
(0.12%)
Hang Seng
16,541.42 148.58
(0.91%)
Nikkei 225
40,369.44 201.37
(0.50%)
Forex
USD-INR
83.34 0.01
(0.01%)
EUR-INR
90.21 -0.13
(-0.15%)
GBP-INR
105.20 -0.12
(-0.11%)
JPY-INR
0.55 0.00
(-0.01%)

EQUITY - MARKET SCREENER

Insurance stocks slump as FM pushes new tax regime
01-Feb-23   14:55 Hrs IST
General Insurance Corporation of India (down 13.8%), HDFC Life Insurance Company (down 11%), ICICI Prudential Life Insurance Company (down 10.22%), SBI Life Insurance Company (down 10%), The New India Assurance Company (down 9.17%) and Life Insurance Corporation of India (down 6.06%) and ICICI Lombard General Insurance Company (down 0.75%) slumped.

However, Star Health and Allied Insurance Company was up 0.27%.

The Nifty 50 index was down 73.60 points, or 0.42% at 17,588.55.

Finance Minister Nirmala Sitharaman gave a renewed thrust to the new tax regime in Budget 2023-24 announcement today. The tax rebate has been extended on income up to Rs 7 lakh under the new tax regime.

Under the new income tax regime, individuals can opt to pay tax at the reduced rates without claiming the various tax exemptions and deductions.

Insurance stocks tumbled on concerns that the new tax regime may reduce demand for new insurance policies. Many taxpayers take insurance policies only to benefit from Section 80C deduction. They will not be inclined to do so under the new tax regime.

The tax breaks that will not be available under the new regime include Section 80C deductions (Investments in PF, NPS, Life insurance premium), Section 80D (medical insurance premium), HRA and interest paid on housing loan. Tax breaks for the disabled and for charitable donations will also be gone.

For better targeting of tax concessions and exemptions, I propose to to limit income tax exemption from proceeds of insurance policies with very high value, FM Sitharaman said in her budget speech today.

The budget also stated: It is proposed to provide that where aggregate of premium for life insurance policies (other than ULIP) issued on or after 1st April, 2023 is above Rs 5 lakh, income from only those policies with aggregate premium up to Rs 5 lakh shall be exempt. This will not affect the tax exemption provided to the amount received on the death of person insured. It will also not affect insurance policies issued till 31st March, 2023.

Powered by Capital Market - Live News