the insurance sector the only regulatory change proposed
in the Budget is the increase in deduction allowed under
section 80D for medical insurance premiums from Rs10,000
to Rs15,000 and to Rs20,000 for senior citizens, which
is a very positive move.
There was also a mention in the Budget that the insurance
bill would be presented in the Parliament.
would have expected more incentives on the insurance
and pension investments, especially given that the savings
need to be channelled for infrastructure. So this is
definitely a missed opportunity, said Trevor Bull, managing
director of Tata AIG Life Insurance Company.
the tax front, the positive factor is that there is
no increase in service tax and that the overall tax
structure has not been tampered with. The focus has
been on increasing spending in the core areas while
keeping the tax rates largely stable. There are some
measures to cool the inflation as well.
budget has also been guided by the tax windfall this
year, the upcoming
state elections and the need to placate the Left parties.
However, in fairness, if all these measures are executed
properly, it will allow more inclusive growth although
over a longer period.