Impact of Direct Tax Code on Life Insurance Corporation of India's Business

Generally people try to minimize the tax liability and invest their money in such way so it creates tax benefit for the current year as well as for the future on maturity time. But currently used tax law for income tax act 1961 is not sufficient to reduce the tax evasion and also complex in nature so there is need for modification in income tax law and make it simplified via new tax format of “Direct Tax Code” but most of the changes is related to the investment aspect as under section 80 C so it direct affect to the investment fund like financial institution like bank, mutual fund, insurance sector. Life insurance Corporation of India(LIC) is big giant in the industry various change in product for Exempt Exempt Exempt(EEE) and Exempt Exempt Taxable(EET) regime it creates drastic change for the company. By collecting information from the Amreli district via questionnaire for, Its found that investor who belongs to business background they focus on not to interest to buy new policy as limit increase for investment from 100000 to 150000 and 50000 in purely insurance as uncertain income, certain income people prefer EEE product more and long term aspect investment and as mutual fund is not under EEE or tax safe aspect so it create drastic change in product selection.