Sunday, August 21, 2016

Tax Breaks On Medical Expenses Might Be Hiked

The government is considering increasing the tax deductions on medical expenses and insurance policies in view of the rising medical costs. Sources say the medical reimbursement limit may be raised from Rs. 15,000 currently to Rs. 25,000.

Medical insurance premium for self, spouse and children currently gets a deduction of Rs. 15,000 annually. The government wants to encourage individuals to buy a higher insurance cover in order to be able to meet the rising hospitalisation expenditure. If more people can afford private hospitals, the pressure on government hospitals will decrease.

People often end up buying medical insurance policies in order to claim tax deductions and not exactly keeping their family’s needs in mind. A higher deduction will encourage such people to get a higher coverage.

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