Insurers pin hope on equitable tax, service tax exemption

Insurance companies, be it life or non-life players, are looking up to the forthcoming Budget for announcements that might go their way and help them find a strong footing amidst a highly competitive scenario. Here are some concerns the sector expects the finance ministry to address in the Budget. * Taxability of unrealised gains in respect of general insurance companies All insurance companies, including the general insurance companies, are subject to tax under the provisions of Section 44 of the Income Tax Act. The provisions stipulate that general insurance companies will be subject to a tax on the profits as ...

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