Insurance council opposes tax on withdrawals

The Life Insurance Council has opposed a proposal in the Draft Direct Taxes Code which says policy holders be taxed at the time of withdrawal of insurance fund. SB Mathur, Secretary General of the Life Insurance Council, said either the proposal be changed to retain the present system of exempting a life insurance holder from tax at the time of withdrawal, or tax should be levied only on the real value of the withdrawn sum. Constituted under the Insurance Act, the council is a forum that connects various stakeholders in the insurance sector.