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Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The government’s move towards removal of the exemption on income from insurance policies implies that individuals can’t think about insurance just as a tool to save tax anymore.
Editor's note: Among the surprises in this year’s Union Budget was the finance minister’s decision to remove the exemption on income received from traditional insurance policies where the premium is over Rs 5 lakh. Now, the removal of the exemption only applies on policies that have been purchased on or after 1 April 2023, but what’s important to note is that whether you buy one policy with a premium in excess of Rs 5 lakh, or buy multiple life insurance policies where the total premium paid exceeds Rs 5 lakh, the sum you receive on maturity will not be exempt from tax. This change in the Budget was made with the goal of checking the very large tax-free proceeds that high-networth individuals receive on their high-value life insurance policies. But this change also implies that individuals don’t have to think about insurance as a tool to save tax anymore—which is an opportunity for us to evaluate our own life insurance decisions. Understanding the types of life insurance At its core, life insurance is a guaranteed payment at the time of death. It …
Fiscal discipline holds on paper, but the number is propped up by higher borrowing and revenue sources that are far from stable.
A newly announced Rs 10,000 crore fund of funds is aimed at boosting startup growth.
There are concerns that the proposal, once approved, could mean a greater tax burden for startup employees.
