Tax relief likely for policy holders, insurers

Holders of insurance policies with the sum assured five times the annual premium may soon become eligible for a tax rebate. The move comes amid finance minister P Chidambaram’s efforts to revive the slowing insurance sector, officials told ET. Officials at the finance ministry and insurance regulator IRDA are working jointly to explore various options, including diluting the 18% minimum alternate tax, or MAT, applicable on non-life insurers.


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