LIAFI-SG/GOI-046/14 13 June 2014
Shri. Arun Jaitely,
Minister of Finance,
A-44, Kailash Colony,
NEW DELHI-110 048
Sub: Pre Budget Suggestions
We would like to suggest the following points for your consideration and bring necessary changes in the existing Rules.
1.Service tax: Central Government is collecting service tax on Insurance (risk) premium. We feel that the LIC Policyholders are penalized twice. The Central Govt. is taking 10% of the surplus of premium paid by policyholders. This amount should have been distributed among policyholders. Added to this burden, the policyholder has to pay service tax.
Government is not receiving any amount from the premium paid in the private sector insurance companies. It is in every body’s knowledge that LIC is funding for the nation Building and coming to the rescue of the market whenever it is in huge losses. This entire amount belongs to policyholders of LIC whereas the private insurers are pocketing the surplus. Hence the government should leave the LIC policyholders by exempting them from collection of service tax.We request you to get the collection of Service Tax stopped.
- In order to mobilize savings under Section 80C, we request you to increase the present limit of One Lakh to Two Lakhs.
- The concept of health care is slowly gaining momentum. In order to fine-tune, the premia is to be reduced and avoid service tax.The Income Tax exemption limit under section 80D shall be increased to Rs. 50,000/- from the present Rs. 15,000/-
- Since our LIC Agents have vast contacts, the public are hoping that the New Government will abolish tax system as is expressed by Shri. Narendra Modi ji in a meeting in the presence of Baba Ramdev.We sincerely hope that our suggestions will be taken care off.Thanking you,Sincerely yours,For Life Insurance Agents Federation of India