LIC Policy Update: Big information is coming out from the country’s largest life insurance company LIC (LIC Policy Status). Earlier the central government used to give the benefit of hefty tax on LIC, but this time a big change has been made in the rules, after which people will have to pay tax even after taking LIC policy.
According to the income tax rules, buying LIC’s policy gives the benefit of tax exemption. Insurance companies are in a very strong position because of tax exemption. Customers mostly take LIC’s policy only to save tax.
While giving information, the chairman of LIC has told that about half of the total annual premium of the company comes in the months of January, February and March. Let us tell you that at the end of the financial year, people show a lot of interest in buying insurance policies. People invest money in insurance policies to save their tax without thinking.
Big decisions taken in the budget
Let us tell you that in the budget 2023, the central government has decided that from now onwards tax will have to be paid on the maturity of the policy with a premium of more than Rs 5 lakh. Along with this, the government is promoting the new tax regime across the country, in which there is no exemption on tax. That is, those who now take LIC policy to save tax, they can also stop taking it in future.
The effect will be seen on the growth of LIC
Let us tell you that in the coming times, the effect of this decision of the government on the insurance companies can be seen. Its direct effect will be seen on the growth of LIC.
Giving further information, the chairman of LIC has said that it is expected to have little impact as at present there are less than 1% policies whose premium is more than Rs 5 lakh. On the other hand, if a person has more than one LIC policy and their total premium together is more than 5 lakhs, then the customer will get the benefit of tax exemption on this.
