Budget 2021: Will govt increase income tax relief on medical bills?
The IT Act provides a deduction of Rs 25,000 for a premium paid towards health insurance of spouse, self, and children under Section 80 D if the eldest member is below the age of 60. In case the age of the eldest member being 60 years or above a higher deduction of Rs 50,000 is allowed
- Feb 1, 2021,
- Updated Feb 1, 2021 7:39 AM IST
The rising cost of medical expenses has become a point of worry for Indians amid the pandemic. Taxpayers are hoping that in the upcoming Budget 2021, the government announces measures to ease one's medical bill.
As per the Income Tax Act, a taxpayer can avail of several kinds of deductions on buying health insurance. For instance, the IT Act provides a deduction of Rs 25,000 for a premium paid towards health insurance of spouse, self, and children under Section 80 D if the eldest member is below the age of 60. In case the age of the eldest member being 60 years or above a higher deduction of Rs 50,000 is allowed.
An additional deduction for the insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age, or Rs 50,000 if your parents are aged above 60.
However, in case of the preventive health check-ups of self, spouse, or children, Section 80D of the Income Tax Act only allows a deduction of up to Rs 5,000, irrespective of whether the person is covered under a medical health insurance policy or not.
The deduction of Rs 5,000 is counted within the overall limit of Rs 25,000 or Rs 50,000 as the case may be. Taxpayers, especially the middle class would expect the FM to increase the limit to Rs 10,000 in Budget 2021.
Preventive care helps to detect or prevent serious diseases and medical problems before they can become major. Annual check-ups, immunisations, and flu shots, as well as certain tests and screenings, are a few examples of preventive care. It is also known as routine care.
Also Read: Budget 2021: Govt plans Rs 3 lakh crore package to revive power discoms
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The rising cost of medical expenses has become a point of worry for Indians amid the pandemic. Taxpayers are hoping that in the upcoming Budget 2021, the government announces measures to ease one's medical bill.
As per the Income Tax Act, a taxpayer can avail of several kinds of deductions on buying health insurance. For instance, the IT Act provides a deduction of Rs 25,000 for a premium paid towards health insurance of spouse, self, and children under Section 80 D if the eldest member is below the age of 60. In case the age of the eldest member being 60 years or above a higher deduction of Rs 50,000 is allowed.
An additional deduction for the insurance of parents is available to the extent of Rs 25,000 if they are less than 60 years of age, or Rs 50,000 if your parents are aged above 60.
However, in case of the preventive health check-ups of self, spouse, or children, Section 80D of the Income Tax Act only allows a deduction of up to Rs 5,000, irrespective of whether the person is covered under a medical health insurance policy or not.
The deduction of Rs 5,000 is counted within the overall limit of Rs 25,000 or Rs 50,000 as the case may be. Taxpayers, especially the middle class would expect the FM to increase the limit to Rs 10,000 in Budget 2021.
Preventive care helps to detect or prevent serious diseases and medical problems before they can become major. Annual check-ups, immunisations, and flu shots, as well as certain tests and screenings, are a few examples of preventive care. It is also known as routine care.
Also Read: Budget 2021: Govt plans Rs 3 lakh crore package to revive power discoms
Also Read: Budget 2021: How is 'Skill India' doing?