Expect big income tax relief on home insurance in 2019-20 budget

New Delhi: Union Finance and Corporate Affairs Minister Nirmala Sitharaman may announce big relief on tax on home insurance in the Union Budget 2019 that is scheduled to be announced later this week.

The Finance Minister may offer relief in income tax related to home insurance premium, sources told Zee Media. The rebate can be either incorporated by extending the scope of section 80D or there can be an announcement on a separate section related to insurance rebate that includes home, health and life insurance; sources added.

Government may also contemplate on insurance relief in the affordable housing sector. This will also benefit several general insurance companies like ICICI Lombard, New India Assurance and GIC RE who are pushing hard to create a bigger market place for themselves in the home insurance sector, sources said.

Nirmala Sitharaman has started her Pre-Budget Consultations with different stakeholder Groups in connection with the forthcoming General Budget 2019-20. The insurance companies are believed to have submitted their suggestion to the finance minister regarding concession or relief in home insurance tax, industry sources told Zee Media.

Nirmala Sitharaman, who is the first full-time woman Finance Minister, will be presenting the budget for 2019-20, 5 July. The first session of the newly elected 17th Lok Sabha will be held from 17 to 26 July. The Economic Survey for 2019-20 will be tabled 4 July followed by the presentation of the budget on the next day.

Nirmala Sitharaman’s budget team comprises Minister of State for Finance Anurag Singh Thakur and Chief Economic Advisor Krishnamurthy Subramanian.

The official team is led by Finance Secretary Subhash Chandra Garg, Expenditure Secretary Girish Chandra Murmu, Revenue Secretary Ajay Bhushan Pandey, DIPAM Secretary Atanu Chakraborty, and Financial Services Secretary Rajiv Kumar.