The insurance industry has a long gestation period and it takes a long time to achieve a break-even. Accordingly, the limit of 8 years for carry forward and set off of business losses is not sufficient. Considering the importance of Insurance Sector for the Indian economy, it should be allowed to carry forward and set-off, the unabsorbed losses for an indefinite period, according to FICCI in its Pre-Budget memorandum 2014-15.

It is suggested that the sum assured multiple be lowered to 5 times of the premiums paid or the tax benefits should be linked with the tenure of the policy rather than the sum assured and accordingly, the tax benefit should be given only on policies with a minimum tenure of 10 years.

Avoid discrimination in taxation of pension products vis-a-vis non-pension products.

It should be explicitly clarified that the re-insurance premium earned by foreign re-insurers from Indian insurance companies in respect of which no part of the operations of the reinsurer are carried out in India is not liable to tax in India.

No MAT to be levied on General Insurance Industry.

Gains or Losses on realisation of investments in case of General Insurance business.

Adjustment of TDS in case of free look cancellations.

Taxation on distribution of income to life insurance companies by securitization trusts.

Tax treatment on assignment of Keyman Insurance Policies.