Life Insurance Council – Insurance Awareness Committee (IAC).

Mumbai, Maharashtra, 29th of January, 2026 : “Taxation has a harder impact on income for pension earners.

We believe there is an opportunity to align taxation on pensions with other fixed-interest instruments by taxing only the interest or gains. This approach would increase post-retirement income for pension earners and mobilise long-term savings through life insurance solutions.

Additionally, providing a standard deduction for pension earners who do not commute their corpus would ensure tax parity across all pensioners.”

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