Watch: Budget 2024: What’s in it for the insurance sector?

Two key measures were announced for the insurance sector in the budget. One was reducing the TDS or tax deducted at source on payouts (payments by the life insurer concerned) in respect of life insurance policies from 5% to 2%. This amendment will come into force on October 1, 2024.

Likewise, the Budget has proposed to reduce TDS from 5% – 2% on the Payment of insurance commission. The amendment will take effect from April 1, 2025.