Venky Iyer, Co-Chairperson, Insurance Awareness Committee (IAC-Life)
“Taxation has a disproportionate impact on the incomes of pension earners. There is a clear opportunity to align pension taxation with other fixed-income instruments by taxing only the interest or gains, rather than the entire payout. Such an approach would enhance post-retirement income security while also mobilising long-term savings through life insurance solutions.
In addition, extending a standard deduction to pensioners who choose not to commute their corpus would help ensure tax parity across all pensioners and support more sustainable retirement planning.”