Deduction of tax at source, on Reinsurance premium, paid to foreign reinsures, to be maximum at 2%.
This is also the practice followed in many other countries.
- TDS on health insurance claim payments reimbursed to hospitals should be NIL as this will help in controlling the rise of health insurance premium and will help increasing penetration of health insurance.
- Service tax may be removed for all insurance policies with premium upto Rs.2500/-
- Cenvat credit to be allowed on payments made to motor repair garages as part of the motor claim settlement
Deduction of tax at source, on Reinsurance premium, paid to foreign reinsures, to be maximum at 2%.