With the opening up of insurance sector in 2001, many new private insurers have entered into the industry. The tax laws, however, has not kept pace with the regulatory changes. Accordingly, there are certain tax challenges faced by the sector based on the present tax law. Every budget brings with it, the expectation that the Government would settle some of the issues that the insurance companies, particularly life insurance companies are facing. However, the clarifications have so far remained elusive.

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