Budget Expectations: Hope FM doesn't raise taxes, says HDFC Life

The Direct Taxes Code (DTC) may take a while to be implemented in entirety, but the Finance Minister may make some aspects of it a reality when he gets up to present this year's budget. And this has the insurance industry worried.

The biggest worry is that the tax rate on the surplus profit of insurance companies may be hiked from 13.52% to 30%. Second is that pension products, which are currently exempt from tax, will face a 30% income tax on maturity. Amitabh Chaudhry, managing director and chief executive of HDFC Life believes that it would be very simple for the government to raise tax rates for the insurance industry, but hopes against it.