Sunday, January 17, 2021
Home Business Government May Extend Income Tax Deduction Benefits For COVID Treatment

Government May Extend Income Tax Deduction Benefits For COVID Treatment

To the individuals not covered under any health insurance

Continuing with its pandemic relief initiatives, the government may extend income tax deduction benefits for Covid-19 treatment to individuals not covered under any health insurance.

Sources said that several pre-budget proposals for providing tax relief for Covid-19 treatment have come to the Revenue Department and these are being actively examined. If the proposal is accepted, it may form part of budget proposals for 2021-22, they added.

Follow NewsGram on Twitter to stay updated about the World news.

Currently, few deductions have been prescribed under Chapter VI-A of the Income Tax Act, 1961 for medical treatment for self or dependent suffering from disability/severe disability (Sections 80DD, 80U), and medical treatment of prescribed diseases and ailments (Section 80DDB). However, there is no specific deduction under the Act which covers treatment cost for Covid-19 patients who are not covered under any health insurance.

The proposal that is now being considered is to include expenses made on Covid-19 treatment under the prescribed diseases category as per Section 80DDB and therefore, qualify such expenditure for getting income tax deduction benefits.

Income Tax
Even with health insurance, several policies have not included cover for Covid-19 treatment. Pixabay

Interestingly, a donation made to PM CARES fund designed specifically for providing Covid-19 relief is currently eligible for 100 percent deduction under Section 80G of the Act, but no corresponding deduction has been notified for expenses incurred on treatment of the disease itself.

Want to read more in Hindi? Checkout: अमेरिकी दूतावास के सहयोग से प्रशिक्षित हुए दिल्ली के 800 शिक्षक

“Given the substantial cost involved in Covid-19 treatment in Government or private hospitals, a separate deduction capped up to Rs 1,00,000 or actual treatment cost incurred by the taxpayer for self or family, whichever is lower, may be considered to be introduced under the Act to provide much-needed relief to the taxpayers especially when such costs are not covered under a health insurance policy,” said Parizad Sirwalla, partner and head, global mobility services-tax, KPMG Assurance, and Consulting LLP India.

ALSO READ: India Is Ready For a Massive COVID Vaccination Drive With Two ‘Made in India’ Vaccines: PM Modi

The inclusion of Covid-19 treatment for tax deduction would bring big benefits to individuals and their families who are not covered under any health insurance plan but still face this unwanted additional financial burden from the pandemic. Even with health insurance, several policies have not included cover for Covid-19 treatment. Such individuals would also benefit from I-T deduction if it is made available. (IANS)



Most Popular

Here’s How Strawberry Cultivation is Going To Transform The Region of Jhansi

Jhansi which is well-known as the land of valour is all set to write a new chapter and strawberry cultivation would play a pivotal...

Rapid Blood Test Can Predict Severe Disease Risks in COVID Patients

Researchers, including one of Indian origin, have shown that a relatively simple and rapid blood test could predict -- within a day of a...

Every Family is Dysfunctional and its Normal: Mithila Palkar

Actress Mithila Palkar says it took her some time to understand that every family is dysfunctional. Talking about her perspective of a normal family, Mithila...

BAP Technique: A New Approach Towards Skincare

Aging of skin comprises of intrinsic and extrinsic factors. The intrinsic factors are genetic. The extrinsic factors include sun exposure, pollution, unhealthy diet, inadequate...

Hindu Holy Books: The Four Vedas

BY SHWETA PORWAL The Word Veda means wisdom, knowledge, or vision, and it serves to manifest the language of the gods in human speech. Vedas...

Music That is Happening Today is a Mixture of Good and Bad: Neeraj Shridhar

Singer Neeraj Shridhar, who has given multiple indie pop and Bollywood hits, besides remixes, says that when he remixed songs it was to revive...

Latest Study Suggests Digestive Tract Bacteria Affects Severity of COVID infections in The Body

A new study indicates the kind of bacteria found in a person’s digestive tract can affect the severity of coronavirus infections and the body’s...

This Indian Army Officer Has Developed The Country’s First indigenous 9mm ‘Machine Pistol’

Nagpur-based Indian Army officer Lt Col Prasad Bansod has developed the country's first indigenous 9 mm 'Machine Pistol', an official said here on Saturday. Working...

Recent Comments