Changes in I-T rules will shock MF and insurance companies.

Changes in I-T rules will shock MF and insurance companies.

Investors can opt out of such schemes due to lack of tax benefits on investment products like ULIP and ELSS

Major companies in the insurance and financial sectors have expressed fear of the impact of savings on the part of families with the announcement of new direct tax system in the budget. They believe that policyholders can opt out of such schemes due to savings in the new tax system and non-tax benefits on investment products such as ULIP and ELSS.

RM Visakha, CEO of IndiaFirst Insurance said, 'Managing risk through insurance is an essential part of nation building. Investment products have always been encouraged in India with tax exemptions.

Finance Minister Nirmala Sitharaman had proposed to remove at least 70 examinations received by taxpayers through amendment in section 80C of the Income Tax Act in the budget speech.

Naveen Kukreja, CEO and co-founder of Paisabazaar, said, "The new tax system will reduce the demand for financial products like life insurance, medical insurance, pension plans and ELSS." Selecting a new system can weaken the financial position of taxpayers.

State Bank of India, the country's largest bank, has said, 'In principle there is good intention behind the new tax proposal but this will not increase the demand for consumption immediately because India is a country where the scope of social security is small and it is necessary that We encourage financial savings in families. For example, mutual funds (ELSS) and insurance companies get a lot of business from the executions received under section 80C. Withdrawal of these examinations may reduce the funds in these saving schemes.

The major reason for the reduction in tax rates in the new tax system is to increase consumption in the country.

The Unit Linked Investment Plan (ULIP) is an investment and insurance product. In this, a portion of the investment is used to provide insurance cover to the investor and the other through equity, debt, hybrid or money market funds.

The Equity Linked Savings Scheme (ELSS) is a diversified equity mutual fund that invests in the capital market. Both these products are very popular among tax payers as they offer tax benefits.

In the financial year 2019, ULIP's market grew by 17% to reach Rs 76,152 crore.

Data from the Association of Mutual Funds in India (AMFI) shows that as of June 2019 there were approximately 1.15 crore ELSS portfolios with an investment of Rs 93,989 crore.

G Muralidhar, managing director of Kotak Mahindra Life Insurance Company, said, "We have to see how many tax payers choose the reduced tax rates and what effect it has on the savings culture in the families. Changes in I-T rules will shock MF and insurance companies

Investors can opt out of such schemes due to lack of tax benefits on investment products like ULIP and ELSS

Major companies in the insurance and financial sectors have expressed fear of the impact of savings on the part of families with the announcement of new direct tax system in the budget. They believe that policyholders can opt out of such schemes due to savings in the new tax system and non-tax benefits on investment products such as ULIP and ELSS.

RM Visakha, CEO of IndiaFirst Insurance said, 'Managing risk through insurance is an essential part of nation building. Investment products have always been encouraged in India with tax exemptions.

Finance Minister Nirmala Sitharaman had proposed to remove at least 70 examinations received by taxpayers through amendment in section 80C of the Income Tax Act in the budget speech.

Naveen Kukreja, CEO and co-founder of Paisabazaar, said, "The new tax system will reduce the demand for financial products like life insurance, medical insurance, pension plans and ELSS." Selecting a new system can weaken the financial position of taxpayers.

State Bank of India, the country's largest bank, has said, 'In principle there is good intention behind the new tax proposal but this will not increase the demand for consumption immediately because India is a country where the scope of social security is small and it is necessary that We encourage financial savings in families. For example, mutual funds (ELSS) and insurance companies get a lot of business from the executions received under section 80C. Withdrawal of these examinations may reduce the funds in these saving schemes.

The major reason for the reduction in tax rates in the new tax system is to increase consumption in the country.

The Unit Linked Investment Plan (ULIP) is an investment and insurance product. In this, a portion of the investment is used to provide insurance cover to the investor and the other through equity, debt, hybrid or money market funds.

The Equity Linked Savings Scheme (ELSS) is a diversified equity mutual fund that invests in the capital market. Both these products are very popular among tax payers as they offer tax benefits.

In the financial year 2019, ULIP's market grew by 17% to reach Rs 76,152 crore.

Data from the Association of Mutual Funds in India (AMFI) shows that as of June 2019 there were approximately 1.15 crore ELSS portfolios with an investment of Rs 93,989 crore.

G Muralidhar, managing director of Kotak Mahindra Life Insurance Company, said, "We have to see how many tax payers choose the reduced tax rates and what effect it has on the savings culture in the families.