LIC public offer after Sept.

The removal of tax exemptions under the proposed new tax code could hurt the insurance business and hamper insurance penetration and density, which are lagging in comparison to other developed countries. Apart from insurance, equity linked saving schemes (ELSS) products offered by mutual funds, which are notified under Section 80 C exemptions, will also be impacted. This is because many taxpayers use life insurance policies, ULIPS and ELSS to fill their quota of deductions, which may not apply anymore in the new dispensation.

Soumya Kanti Ghosh, group chief economic advisor of State Bank of India, said, "In the previous budgets, government had given thrust to the sector by offering a number of schemes like Pradhan Mantri Jan Surakhsha Yojana, Pradhan Mantri Jevan Jyoti Bima Yojana, etc. This will affect the insurance business and may also affect the insurance penetration and density in India, which is lagging compared to other developed countries. India's insurance penetration

New Delhi, Feb. 2: The listing of Life Insurance Corporation may be done in the second half of the next financial year, finance secretary Rajiv Kumar said on Sunday. Many processes have to be followed and legislative changes would also be required for the listing of LIC, Kumar said. “Listing in the second half of FY21 seems logical," he said. is at 3.7 per cent compared to US at 7.14 per cent, UK at 10.61 per cent and in Asian countries like Japan at 8.86 per cent, South Korea at 11.16 per cent and Singapore at 7.82 per cent."

The budget has proposed rejigging the income tax slabs to reduce the total tax payable by individuals. Accordingly, 70 tax exemptions and deductions will not be available in the new regime, including Sec. 80 C investments, HRA, home loan interest, LTC, medical insurance premium, standard deduction, savings bank interest and education loan interest.