Union Budget 2020: Healthcare expenses are one of the biggest and many-a-times unpredicted expenditures for a taxpayer. So, taxpayers would expect Finance Minister Nirmala Sitharaman who will present her second Budget today to announce measures to ease one's medical bills.
The Income Tax Act of India aims to ease the burden on the taxpayer and hence allows deductions on premiums paid for medical insurance and preventive health check-ups for the family, including spouse, children and dependent parents. However, the maximum deduction for preventive health check-up in total is Rs 5,000. Taxpayers, especially the middle class would expect the FM to increase the limit to Rs 10,000 in the Budget 2020.
The tax deduction for preventive health check-ups is in addition to the deduction available on premium payment. If one is eligible to claim Rs 20,000 of tax deduction, along with Rs 5,000 for preventive health check-up deduction, the total money saved would be Rs 25,000.
The Income Tax Act also allows super senior citizens (80 years and above) who do not have health insurance and are dependents on their children to avail a tax deduction of Rs 50,000 under the Section 80D.
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Preventive health check-ups aim to minimise health risks and detect illnesses at an early stage. Researches across the globe have shown that preventive health check-ups are more economical as well as less stressful.
A slew of measure to revive the economy and boost consumption is expected from Finance Minister Sitharaman. Experts believe that putting more take-home salary and more money in the hands of the middle class, who usually reel under the pressure of income tax, would boost consumption and putting the economy back on track.
FM Sitharaman and PM Modi asked netizens to send in their ideas and suggestions to boost the economy in the run-up to Budget 2020. The ministers also held multiple high-profile meetings to discuss the state of the economy.