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TMI BlogMore Savings, Better Coverage: How Budget 2025-26 Puts More Money in Your Pocket & Expands Insurance for AllX X X X Extracts X X X X X X X X Extracts X X X X ..... More Savings, Better Coverage: How Budget 2025-26 Puts More Money in Your Pocket & Expands Insurance for All X X X X Extracts X X X X X X X X Extracts X X X X ..... and relief for individuals and businesses alike. With an ambitious push towards ‘Insurance for All by 2047’, the government is not just tweaking policies but laying the foundation for a stronger, more resilient financial ecosystem. Here’s a deep dive into the biggest takeaways from the budget—and why they matter to you. Insurance Sector Reforms: A Giant Leap Toward Inclusion For years, India’ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s insurance penetration has lagged behind global standards. This year’s budget takes a transformative approach to change that, especially in rural areas and microinsurance markets. 1. Bigger Foreign Investments in Insurance: The government has increased the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%, ensuring greater capital inflow, innovation, and competitive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pricing in the industry. This move is expected to attract billions in foreign investment, strengthening the Indian insurance market. 2. Massive Tax Benefits for Micro & Rural Insurance: To make insurance more affordable and accessible, the budget introduces tax exemptions and GST cuts: • 100% Tax Deduction on premium income for insurers offering microinsurance (Rs. 2 lakh cover or below) in rur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al areas • GST Slashed to 0% for small-ticket life, health, and general insurance policies in rural regions (previously 18%) • Higher Tax Deductions for Rural Policyholders: • Additional Rs. 50,000 deduction under Section 80C for policyholders in rural areas • Rs. 25,000 extra deduction under Section 80D for health insurance 3. Direct Government Subsidies to Reduce Premiums: The government is taki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng bold steps to financially support policyholders: • Viability Gap Funding (VGF): Government will cover 30-50% of premium costs for life, health, and crop insurance • Interest-Free Loans: Insurers expanding to rural India can avail 0% interest loans • Premium Support for New Policyholders: First-time microinsurance buyers will receive Rs. 1,500 as a government subsidy per policy 4. Revamped & New ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Government Insurance Schemes: Major insurance programs have expanded their coverage: • PM Jeevan Jyoti Bima Yojana (PMJJBY) & PM Suraksha Bima Yojana (PMSBY): • Premium slashed by 20% for Below Poverty Line (BPL) families • Coverage increased from Rs. 2 lakh to Rs. 3 lakh • Kisan Suraksha Bima Yojana (NEW): Life & health insurance for farmers at subsidized rates • Crop Insurance Expansion (PMFBY) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... : 60% premium subsidy for small & marginal farmers, now covering post-harvest losses due to climate change 5. Digital & Distribution Boost for Rural Insurance: Technology is being leveraged to bridge the insurance gap: • ‘One-Stop Digital Insurance Platform’ for easy access & claim processing • Common Service Centers (CSCs) to serve as rural insurance enrollment hubs • Higher Commission for Rural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Insurance Agents (30% increase) to drive deeper market penetration 6. Special Focus on Women & Gig Workers • Mahatma Gandhi Women Insurance Scheme: Rs. 5 lakh life & health cover for self-help group (SHG) members • Interest-Free Microloans for women buying insurance • Gig Workers’ Insurance: Delivery agents, drivers, and farm laborers to receive government-backed accident & life insurance The Expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted Impact • Insurance penetration to rise from 25% to 50% in rural India by 2030 • Lower insurance costs for individuals, farmers, and small businesses • Stronger financial security against health, accident, and livelihood risks Income Tax Reforms: More Money In Your Pocket This year’s budget puts more cash in the hands of individuals and businesses, simplifying the tax system while offering maj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or relief to the middle class and MSMEs. 1. Revised Tax Slabs: Lower Rates for Higher Savings The government has slashed tax rates, offering much-needed relief to taxpayers. Income Range (Rs.) Old Tax Rate New Tax Rate (2025-26) 0 – 3 lakh Nil Nil 3 – 7 lakh 5% 5% (with rebate u/s 87A) 7 – 10 lakh 10% 10% 10 – 15 lakh 15% 12.5% (reduced) 15 – 20 lakh 20% 18% (reduced) Above 20 lakh 30% 25% (re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced) • Effectively, income up to Rs. 7 lakh remains tax-free under the new tax regime. • Middle-class earners will save significantly with these rate cuts. 2. Standard Deduction & Tax Rebates Increased • Standard Deduction for Salaried Individuals increased to Rs. 60,000 (was Rs. 50,000) • Rebate u/s 87A increased to Rs. 7 lakh (was Rs. 5 lakh) 3. Relief for Home Buyers & Renters • HRA Deduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion increased by 25% for salaried employees • Interest Deduction on Home Loan (Section 24B) raised to Rs. 3 lakh (was Rs. 2 lakh) 4. Major Benefits for Startups & MSMEs • Corporate tax rate for new MSMEs reduced to 15% (was 22%) • Tax holiday for startups extended till 2027 5. Digital Taxation & Compliance Made Easier • No penalties on minor GST filing errors for small businesses • Tax Refund Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessing within 15 days for online IT returns • Faceless Tax Assessment further simplified The Big Picture: Why This Budget is a Game Changer This year’s budget is not just about policy changes—it’s about empowering millions of Indians. • Lower tax burden means more disposable income for individuals • Affordable insurance ensures financial protection for rural India • MSMEs & startups get major t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax relief, fueling entrepreneurship • Simplified tax processes make compliance easier for businesses This is not just a budget—it’s a blueprint for a financially stronger, more inclusive India.
(Disclaimer: The above press release comes to you under an arrangement with Newsvoir and PTI takes no editorial responsibility for the same.). PTI PWR PWR X X X X Extracts X X X X X X X X Extracts X X X X
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