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A salaried professional opting for a lower rate of tax under the new regime will not be eligible for deductions, including insurance premium paid and ELSS investments. Removal of tax exemptions under Section 80C in the new tax regime could be a dampener for life insurance products as well as equity-linked savings schemes (ELSS) of mutual funds. In her Budget speech on February 1, Finance Minister Nirmala Sitharaman said a salaried professional opting for a lower tax rate under the new regime will not be eligible for deductions, including insurance premium paid and ELSS investments. “The removal of 80C benefit may pose a risk to new business volumes of life insurance companies,” said Kotak Institutional Equities in a report. Life insurance Tax exemptions are an important incentive for purchase of life insurance. To be eligible for exemption under Section 80C, the sum assured has to be 10 times the annual premium. This is part of the Rs 1.5 lakh limit under ...

Finance Minister Nirmala Sitharaman today announced no changes in personal income tax rates but levied an additional surcharge on the super-rich. She also sought to spur growth with a reduction in corporate tax and sops to the housing sector, startups, and electric vehicles. Among key announcements, Sitharaman said that digital payments will get cheaper, govt will launch an ATM-like One Nation One Card for pan-India travel and new model rental laws will be unveiled to boost affordable housing. 1  Taxes :  * No change in personal income tax rates  * Additional Rs 1.5 lakh tax relief on home loan for the purchase of a house up to Rs 45 lakh.  * Custom duty hike on fuel by 1 rupee, gold, and precious items; Petrol & diesel to get costlier.  * 3% surcharge on an income of Rs 2 crore; 7% on Rs 5 crore and above.  * Corporate tax with a turnover of up to Rs 400 crore slashed to 25 percent from a current rate of 30 percent....