Tax Exemption & Service Charges in Fasal Bima Yojana
Fasal Bima Yojana one of the innovative crop insurance scheme which was launched recently by replacing the existing old insurance schemes in India. The main object is to provide farmers with better insurance coverage and financial support during the instance of crop failure due to whether or other reasons. The scheme was launched with better facilities so as to encourage farmers to continue farming as their main occupation.
Important Features of Fasal Bima Yojaa
- When compared with the other existing insurance scheme for crops, this fasal bima yojana benefits a lot for farmers. Under this scheme farmers are meant to pay lesser premium without compensating the insured amount. The amount which are not able to paid by farmers will be paid by government.
- The scheme ensures the financial flow on agricultural sector, especially for the farmers from rural villages of India. In most cases, farmers from rural areas affected a lot because of improper rainfall and other natural calamities.
- Since the insurance scheme is targeted towards the welfare of the farmers, the farmers will be exempted from tax. Service charges to the bank will be taken from the premium that is collected from the farmers.
- Scheme will cover all kinds of yield losses of the standing crops, caused due to various reasons. Even the insured crops which the farmer is not able to plant due to unfavorable weather condition will be considered as loss. Post-harvest losses will be covered, for which the farmer has claim within 15 days.
|Fasal Bima Yojana also known as||Pradhan Mantri New Crop Insurance Scheme|
|Who Introduced?||Central Government of India|
|Total Estimated Budget||Rs. 17, 600 crore|
|Who named this scheme as AMRIT YOJANA?||Agricultural Minster Shri. Radha Mohan Singh|
|Who names this scheme as SAFETY SHIELD?||Union home minister Shri Rajnath Singh|
Service Tax in Fasal Bima Yojana
Since this scheme will be a replacement to the previously existing agricultural insurance scheme, the farmers will be exempted from paying taxes. In addition they will be able to receive various benefits and facilities without paying a service tax.
Commission And Charges by Banks & Other Insurance Company
Under this scheme the financial bodies and the banks will be paid service charges at the rate of 4% of the premium that is being collected from the farmers. All the banks and other financial bodies who are involved with this Yojana will be paid these service charges. Apart from this, the rural agents who are involved in insurance providing services to the farmers, should be given a commission amount. The amount of commission will be decided by the insurance company as per the rules of IRDA regulation.