Budget 2021 Expectations: The budget presented for the financial year 2021-11 is special in many ways because Finance Minister Nirmala Sitharaman will present it in the midst of corona epidemic. In such a situation, the government is expected to give tax relief on the expenses related to hospitalization if infected with the coronavirus. Health insurance is not yet in practice in the country and the health insurance cover of most people is not enough to deal with the expenses of hospitalization due to Coronavirus. For this, there is no set standard for hospital-related expenses across the country. Apart from this, the tax deduction limit on health insurance premium can be increased.
Demand to reduce GST rate to promote health insurance
Rakesh Jain, ED and CEO of Reliance General Insurance, says that the government should announce the package for the hospitals on the expenses related to the hospital during treatment of COVID 19, just as the package has been set in Ayushman India in the budget. According to Jain, many people do not have health insurance and many people have very less health cover due to which the corona epidemic affected the people financially. Apart from this, the government is also expected to make the expenditure on the treatment of Corona patients a standard as many people are being affected by this. Jain says that the government should reduce the GST rate from 18 per cent to 5 per cent to promote health insurance.
Demand for the inclusion of Corona under Sector 80DDB
According to tax rules, tax deduction benefit of up to Rs 40 thousand per year is given under Section 80DDB for many diseases including neuro-diseases, cancer, AIDS and chronic renal failure. For senior citizens, this limit is Rs 1 lakh. Jain says that the central government should bring the expenditure on the treatment of corona under section 80 DDB.
Due to the Corona epidemic, the number of people taking health insurance is increasing. Jain says that the need for health cover has increased, in such a situation, the government should increase the tax exemption on health insurance premium so that taxpayers are motivated about health insurance. According to Jain, under Section 80D, the government should give an additional rebate of 25 thousand on the premium of health insurance for self and parents. Currently, under Section 80D, you get the benefit of the tax deduction on health premiums up to 25 thousand rupees. In the case of senior citizens, this limit is 50 thousand rupees. Jain believes that with increasing tax incentives, more and more people will increase the health insurance cover. Spending on treatment is becoming expensive, so more coverage should be taken in health insurance.