Amid rising inflation, it is becoming very difficult to get treatment due to diseases. Recently, Policy Bazaar had released a data, in which it was told that in the last five years, the expenditure on treatment of even minor diseases has doubled. Apart from this, medical insurance has also become expensive. Due to inflation, people have to pay higher premium on mediclaim. Now in such a situation, people are hopeful that their treatment can be cheaper in this budget. Can the limit of tax benefit on mediclaim be increased in the budget?
Will the tax deduction limit increase?
Finance Minister Nirmala Sitharaman is going to present the interim budget on 1 February. After the formation of the new government before the Lok Sabha elections, the government will present the vote on account in the Parliament for the full budget to be presented so that the government expenditure for the next four months can be approved. But it is expected that before going into the electoral battle, the Modi government will try to woo the voters through populist announcements in the interim budget. In such a situation, it is expected that after the increasing expenditure on treatment and medical insurance becoming expensive, the Finance Minister may increase the limit of deduction for claiming tax exemption on payment of mediclaim premium.
Premium exceeds deduction limit
Now if a person takes a mediclaim of up to Rs 5 lakh for his spouse and two children, then he has to pay a premium of up to Rs 36,365 annually. And if he takes mediclaim for 10 years, then he has to pay an annual premium of Rs 40,227 and if he takes medical insurance of Rs 20 lakh, then he has to pay an annual premium of Rs 47,000. In such a situation, the tax deduction benefit on premium payment of Rs 25,000 under 80D is proving to be inadequate.
No change in 9 years
Last time in the budget presented in the year 2015, the government had increased the deduction limit under 80D from Rs 15,000 to Rs 25,000. After that no change has been made in 9 years. For senior citizens, this limit was increased from Rs 30,000 to Rs 50,000 in 2018. But meanwhile people have suffered the brunt of Corona but there has been no increase in the limit for claiming tax deduction.
Tax benefits available here also
In such a situation, the Finance Minister is being demanded to increase the deduction limit under 80D. At the same time, the benefit of medical insurance is available only to those taxpayers who file returns under the old income tax regime. The benefit of this deduction is not available in the new income tax regime. In such a situation, it is also being demanded that the benefit of tax deduction on medical insurance premium should be given to the taxpayers in the new income tax regime. Now the question arises whether Nirmala Sitharaman, who is presenting the budget for the sixth consecutive time, gives this gift to the taxpayers or not?