Union Budget 2023 Highlights

Finance Minister of India (FM) Nirmala Sitharaman presented the Union Budget in Parliament on February 1 2023. From the perspective of each industry, there were many expectations for Budget 2023. Let us take a look at the impact of this Union Budget on insurance industries.

Union Budget 2023 at Glance

Below mentioned are the details of the union budget 2023:

Union Budget 2023-24 Highlights

• The government of India has provided insurance coverage to 44.6 crore people through the PM Suraksha Bima and PM Jeevan Jyoti Yojana.
• This Union Budget 2023 has limited the income tax exemption from payment of very high-value insurance plans to better target tax discounts and exemptions.
• For life insurance policies (other than ULIPs) issued on or after April 1, 2023, only those plans whose aggregate premium exceeds INR 5 lakh will be tax-free. The tax exemption for the amount received on the death of the covered person is unaffected by this. Also, it will not apply to insurance policies issued before March 31, 2023.
• The maximum deposit amount for the Senior Citizen Savings Scheme would rise from INR 15 lakhs to INR 30 lakhs. The Monthly Income Scheme cap was increased to INR 9 lakhs and INR 15 lakhs for joint accounts.  

Our CEO Mr Balachander Shekhar has also reacted to Union Budget 2023-24, “The government rightly said that our digital infrastructure is unmatched. And this digital power needs to be harnessed more so that job creation, which is one of the primary focuses of the government, is fulfilled. The increase of capital investment outlay by 33% to Rs 10 lakh crore is a great step; this is the third year in a row that the government has increased the capital investment outlay. Increasing the capex outlay is in line with the government’s vision of creating ample job opportunities for the youth, providing a strong impetus to growth, fiscal consolidation and strengthening macroeconomic stability.

With tax rebates for people with income up to 7 lakhs, the middle class will now have more liquidity. This is a great step as personal finance could see a boost from this move. There will be increased investments across personal finance segments, including insurance. The economy is expected to benefit from liquidity, which in turn will help boost the GDP.”

• In the latest tax regime, people earning up to INR 7 lakhs annually will not have to pay any personal income tax as the income tax exemption limit has increased from INR 5 lakhs to INR 7 lakhs.

Old Tax Regime vs New Tax Regime

According to Finance Minister Nirmala Sitharaman, the new tax regime will be the default tax regime. However, individuals will also have the option to pay taxes under the old regime as well. Those with annual income above INR 7 lakhs must choose wisely between the new and old regimes as the income tax exemption limit has been increased from INR 5 lakhs to INR 7 lakhs.

New income tax slabs

• 0- INR 3 lakhs: Nil
• INR 3 lakhs to 6 lakhs: 5%
• INR 5 lakhs to 9 lakhs: 10%
• INR 9 lakhs to 12 lakhs: 15%
• INR 12 lakhs to 15 lakhs: 20%
• Above ₹15 lakhs: 30%

Old income tax slabs

• 0 to INR 2.5 lakhs: Nil
• INR 2.5 lakhs to INR 5 lakhs: 5%
• INR 5 lakhs to INR 7.5 lakhs: 15%
• INR 7.5 lakhs to INR 10 lakhs: 20%
• Above INR 10 lakhs: 30%

Conclusion

As per the final budget for FY2023, anyone with an annual income of INR 7 lakhs will not have to pay any personal income tax. To save more on taxes, you can buy health or life insurance plans from RenewBuy.com. Here is the process to buy a health or life insurance plan from “RenewBuy.com”:

To Buy Health Insurance

• Visit the official website of RenewBuy.
• Click on the “Health Insurance” tab.
• Fill out the form that shows on the next page.
• Compare health plans and select your desired plan.
• Click on the “Buy Now” button
• A pop-up will show you the plan details and the additional rider information.
• Click on the “Proceed to Buy” button.
• Make online payment and the policy documents will be sent to your registered email address.

To Buy Life Insurance

• Visit the official website of RenewBuy.
• Scroll down and click on the “Life” section.
• Fill in the required information such as DOB, Gender, etc.
• The next page will show you the Life Insurance policy in India offered by various insurers”.
• You can choose one of them and proceed with the payment.
• Once the payment is done, the policy document will be shared with you at your registered Email ID.

Our mobile application lets customers buy an insurance policy from RenewBuy POSP advisors.