Among other things, the Finance Ministry is looking at the possibility of exempting first year premium from service tax and extending the scope of tax exemption scheme to cover more life insurance policies.
"I have asked Department of Revenue and CBDT/CBEC to complete the examination of (various) ...Suggestions by October 10, 2012 so that appropriate decisions may be announced shortly thereafter," Finance Minister P Chidambaram told reporters here.
The Minister further said he has asked the Central Board of Excise and Customs (CBEC) to look at the possibility of reducing service tax on first year regular premium as well as single premium policies.
Chidambaram had earlier met the heads of life insurance companies and IRDA chairman J Hari Narayan to work out steps to boost the insurance sector. (MORE)
