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LIC may get a big shock due to new income tax option of government Know what will happen to your policy

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The new income tax option in the budget may shock the country’s largest and only government insurance company Life Insurance Corporation of India (LIC). In fact, the new income tax option is expected to affect the income of LIC due to the abolition of the traditional tax incentive to taxpayers on insurance. According to media reports, the valuation of LIC can also be reduced by this decision. Business newspaper Economic Times of EnglishIt has been reported in the news that there is pressure on the valuation of insurance companies because these companies are trying to change their plans according to the government’s proposed direct tax system. According to a report by global brokerage firm Jefferies, LIC’s retail business is part of a participatory policy that provides middle and low income families with the aim of tax planning. Therefore, the biggest impact of reducing tax benefit will be on LIC.

Understand the new income tax option…

PC Modi, chairman of the Central Board of Direct Taxes (CBDT), told CNBC Awaaz in a special conversation that taxpayers will have both options for low-income and non-income tax income Choose a new system. Or stay in the old system. Where there is a tax exemption on saving.

In the new tax system, there will be an option to pay tax at a lower rate, but it will not get any benefit of deduction. For which option will be beneficial for taxpayers, they will have to calculate their tax liability under the new and old tax option.

All the deductions found under Chapter 6A of the Income Tax Act like Sections 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80 -IAC, 80-IB, 80-IBA, etc. You will not be able to take advantage of the new tax option.

How will this affect LIC –  Experts say that LIC has a retail business participatory policy that provides middle and low income families with the aim of tax planning. Therefore, the biggest impact of reducing tax benefit will be on LIC. That is why there was a huge decline in the shares of insurance companies on the budget day. ICICI Prudential shares fell 12.6% and HDFC Life shares fell 5.8%, while SBI Life shares also slipped 8.6%.

On the other hand, it is also believed that the new tax option will not significantly affect the growth of the insurance company, because the new generation did not show interest in the savings products of LIC or other insurance companies and only took a term plan. If there is no tax benefit, they may want to keep more cash in their hands for consumption.

Also read- If you have more than one bank account, then know how many lakh rupees will be safe now?

Valuation of LIC may be reduced – According to the environment created in the market before the budget, the valuation  of LIC was estimated to be Rs 8-10 lakh crore. At the same time, if the government sells 10 percent stake, it can get more than Rs 80,000 crore. This will help him achieve a major share of the disinvestment target of Rs 2.1 lakh crore fixed for FY21.

What will be the effect on the policy makers- Currently, three-fourths of India’s insurance market has a hold over LIC. However, last year itself, some wrong decisions of LIC regarding investment were also questioned. Now with the government’s decision to bring LIC IPO, it is believed that after the listing of LIC, there will be more transparency in the functioning of the company.

If the company performs better then the insurance holders will also get its benefit. Experts say that most of the policies of LIC are non-unit link. This means that if there is any fluctuation in the stock market, then the effect will not be seen on the policy. At the same time, the effect of better performance of the company will be seen positively on the investment of the people.

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“If India’s position is not going to be like Sri Lanka’s, then”; Raju Shetty’s…

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Kolhapur: Forced Natural Farming Instead of Chemical Fertilizers in Sri Lanka. This created a food crisis in that country. In India, the central government drastically increased the prices of chemical fertilizers. Raju Shetty, leader of the Swabhimani Shetkari Sanghatana, told reporters here on Saturday (May 21) that the price of chemical fertilizers should be reduced if the situation in India is not like that in Sri Lanka.

Raju Shetty said: “The policies of the central and state governments are responsible for the continuous flooding. After floods, there is a tendency to seek compensation. Farmers must pay crop insurance to obtain adequate compensation. Its cost must be shared by the government and the farmers. Agriculture in Kolhapur and Sangli districts have been devastated by floods twice in the last three years, in 2019 and last year.”

Also read: Raju Shetty’s great statement after leaving the front

“Basically, the work done by the central and state governments in the name of policy development is responsible for the flooding,” he said. After the floods subside, farmers receive little assistance in the name of compensation. The agitation against him is ignored. As an alternative to this, farmers should no longer have to pay compensation to the government, but should get money from insurance companies,” Raju Shetty demanded.


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“If the government parties do not want to sit in the street, then”;

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The central government has decided to reduce excise taxes on gasoline and diesel in the wake of the increased policy. On Saturday, Union Finance Minister Nirmala Sitharaman tweeted about it. “We are reducing the central excise duty by Rs 8 per liter on petrol and Rs 6 per liter on diesel. This will reduce petrol by Rs 9.5 per litre, and diesel by Rs 7 per litre, Sitharaman said. After this, the leader of The Devendra opposition has attacked the Thackeray government following this decision.

Many thanks to Prime Minister Narendra Modi and Union Finance Minister Nirmala Sitharaman for the decision to reduce the central tax on petrol and diesel by Rs 8 and Rs 6 per litre, respectively! For this, the central government will bear a charge of Rs 1 lakh crore every year. Prime Minister Narendra Modi’s government has also decided to give a subsidy of Rs 200 per cylinder to recipients of Pradhan Mantri Ujwala Yojana, thus a financial burden of Rs 6,100 crore will be incurred,” said Devendra Fadnavis.

Prime Minister Narendra Modi has once again shown that the Modi government at the Center is the common man’s government in this country. The welfare of the poor is a very important issue for them and they constantly fight for it. He has given the same answer once again from these decisions. Now, I once again request the Chief Minister and the Government of Maharashtra to take the initiative to reduce the taxes on gasoline and diesel and provide more relief to the common man. Because the rates in Maharashtra are the highest. The ruling parties do not want to sit in the streets, they want to give relief to the people,” Fadnavis said.


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“This government belongs to dishonest children, they are in the sea…”, offensive statement from the BJP MLA! | …

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A few days ago, the Supreme Court ordered the state government to declare local body elections in the state within 15 days. Thus, while expressing a strong feeling that the OBC reserve is gone, the Opposition has targeted the Maharashtra Government. BJP has criticized the state government for killing the OBC reserve. In this regard, BJP MLA Babanrao Lonikar’s tongue slipped as he spoke to citizens in the Mantha city of Jalna. He criticized the state government in offensive language. Reactions to his statement are now beginning to surface.

“Government Thieves, Lafange Ministers”

“If this information had been delivered to the Supreme Court by collecting Imperial data and conducting a triple test, an OBC reservation of one thousand percent would have been read. But this government and its ministers, liars, scoundrels, scoundrels should be drowned in the sea. These liars were constantly saying that Modi, the central government should give us the data,” said Babanrao Lonikar.

“Data collected during Manmohan Singh’s rule”

“Manmohan Singh was the prime minister of the country. In Delhi, Maharashtra was ruled by the Congress. The whole country was under the control of the Congress. That was when the survey was done. There were 69,000 errors in it. The Manmohan Singh government never has not released that data to any state. Congress hasn’t released that data in its 50 years of existence. But the OBC ministers in the state are making the scene. They’re giving speeches with scarves around their necks. They’re speaking in the media.” Lonikar said.

“Go to the villages and tell them…”

Speaking at the occasion, Lonikar called on those present to speak about government from town to town. “Go to the villages and tell them that this is a dishonest child. The snake is not visible in the vegetation. We have to explain to the villagers how poisonous this three-winged snake is in Maharashtra,” Lonikar said.


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