{"id":10470,"date":"2021-01-17T01:01:06","date_gmt":"2021-01-16T19:31:06","guid":{"rendered":"https:\/\/carajput.com\/blog\/?p=10470"},"modified":"2025-11-24T21:18:55","modified_gmt":"2025-11-24T15:48:55","slug":"expected-tax-relief-in-budget-2021-on-medical-expenses-insurance","status":"publish","type":"post","link":"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/","title":{"rendered":"Medical expenses &#038; insurance Tax Relief in Budget 2021"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_58 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Page Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69dc83448693f\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dc83448693f\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Lists_types_of_insurance_along_with_their_meanings\" title=\"Lists types of insurance along with their meanings.\">Lists types of insurance along with their meanings.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Expected_Tax_relief_in_Budget_2021_on_Medical_Expenditure_Insurance\" title=\"Expected Tax relief in Budget 2021 on Medical Expenditure &amp; Insurance\">Expected Tax relief in Budget 2021 on Medical Expenditure &amp; Insurance<\/a><ul class='ez-toc-list-level-3'><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Some_focus_areas_and_planned_improvements_are_set_out_as_follows\" title=\"Some focus areas and planned improvements are set out as follows:\">Some focus areas and planned improvements are set out as follows:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Incentives_from_taxes_to_raise_spending\" title=\" Incentives from taxes to raise spending\u00a0\"> Incentives from taxes to raise spending\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Planning_to_expand_the_Section_80D_%E2%80%93_Deduction_for_premiumsexpenses_for_medical_insurance\" title=\" Planning to expand the Section 80D &#8211; Deduction for premiums\/expenses for medical insurance\"> Planning to expand the Section 80D &#8211; Deduction for premiums\/expenses for medical insurance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Charge_on_long_term_capital_gains\" title=\" Charge on long term capital gains\"> Charge on long term capital gains<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Tax-deductible_infrastructure_bond_re-introduction\" title=\"Tax-deductible infrastructure bond re-introduction\">Tax-deductible infrastructure bond re-introduction<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/carajput.com\/blog\/expected-tax-relief-in-budget-2021-on-medical-expenses-insurance\/#Estate_dutytax_on_inheritance\" title=\"Estate duty\/tax on inheritance\">Estate duty\/tax on inheritance<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10471\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/download-39.jpg\" alt=\"\" width=\"966\" height=\"643\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Lists_types_of_insurance_along_with_their_meanings\"><\/span><span style=\"color: #000080;\">Lists <strong>types of insurance<\/strong> along with their meanings.<\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone  wp-image-30535\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/lists-Types-of-Insurance-along-with-their-meanings.-.jpg\" alt=\" lists Types of Insurance along with their meanings.\" width=\"1105\" height=\"2117\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/lists-Types-of-Insurance-along-with-their-meanings.-.jpg 668w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/lists-Types-of-Insurance-along-with-their-meanings.--157x300.jpg 157w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/lists-Types-of-Insurance-along-with-their-meanings.--534x1024.jpg 534w\" sizes=\"(max-width: 1105px) 100vw, 1105px\" \/><\/p>\n<ul>\n<li>Life Insurance : Meaning:<span style=\"font-size: 16px;\"> Provides financial protection to beneficiaries in case of the policyholder&#8217;s death.<\/span><\/li>\n<li>Health Insurance : Meaning:<span style=\"font-size: 16px;\"> Covers medical expenses for illnesses, surgeries, and hospitalization.<\/span><\/li>\n<li>Motor Insurance : Meaning:<span style=\"font-size: 16px;\"> Offers coverage for damages to vehicles and third-party liabilities.<\/span><\/li>\n<li>Travel Insurance : Meaning:<span style=\"font-size: 16px;\"> Covers unforeseen travel-related risks like trip cancellation and medical emergencies.<\/span><\/li>\n<li>Home Insurance : Meaning:<span style=\"font-size: 16px;\"> Protects your home and its contents against natural calamities, theft, and damage.<\/span><\/li>\n<li>Personal Accident Insurance : Meaning:<span style=\"font-size: 16px;\"> Offers compensation in case of death or disability due to accidents.<\/span><\/li>\n<li>Crop Insurance : Meaning:<span style=\"font-size: 16px;\"> Provides financial support to farmers in case of crop failure due to natural calamities.<\/span><\/li>\n<li>Commercial Insurance : Meaning:<span style=\"font-size: 16px;\"> Covers businesses against losses due to fire, theft, liability, and other risks.<\/span><\/li>\n<li>Marine Insurance : Meaning:<span style=\"font-size: 16px;\"> Covers loss or damage to ships and cargo during transit over water.<\/span><\/li>\n<li>Fire Insurance : Meaning:<span style=\"font-size: 16px;\"> Compensates for damage caused by fire to buildings or goods.<\/span><\/li>\n<li>Term Insurance : Meaning:<span style=\"font-size: 16px;\"> A type of life insurance that offers a fixed cover for a specified period.<\/span><\/li>\n<li>Unit Linked Insurance Plan (ULIP) : Meaning:<span style=\"font-size: 16px;\"> Combines insurance coverage with investment options in equity or debt.<\/span><\/li>\n<li>Endowment Policy : Meaning:<span style=\"font-size: 16px;\"> Life insurance that combines savings and insurance benefits.<\/span><\/li>\n<li>Pension Plans : Meaning:<span style=\"font-size: 16px;\"> Provides regular income post-retirement through systematic savings.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Expected_Tax_relief_in_Budget_2021_on_Medical_Expenditure_Insurance\"><\/span><span style=\"color: #000080;\"><strong>Expected Tax relief in <a href=\"https:\/\/carajput.com\/blog\/taxpayers-should-be-aware-of-6-income-tax-reforms-in-the-union-budget-2021\/\">Budget 2021 <\/a>on Medical Expenditure &amp; Insurance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On February 1, 2021, the finance minister is scheduled to present a paperless Union budget and has her task cut out provided that the FY 2020-21 has been challenging and unprecedented for both the government and the common man.<\/p>\n<p>Although the government has made many attempts to provide relief by stimulus packages, this year is a bigger challenge, as the balancing act of controlling the burgeoning fiscal deficit and taxpayer expectations would have to be managed.<\/p>\n<p>Also read: <a href=\"https:\/\/carajput.com\/blog\/apeda-rcmc-registration-meaning-benefits-documents-required-and-so-on-for-an-apeda-license\/\">Application for APEDA (RCMC) Registration<\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Some_focus_areas_and_planned_improvements_are_set_out_as_follows\"><\/span><span style=\"color: #000080;\"><strong>Some focus areas and planned improvements are set out as follows:<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<ol>\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Incentives_from_taxes_to_raise_spending\"><\/span><span style=\"color: #000080;\"><strong> Incentives from taxes to raise spending\u00a0<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>The government implemented a tax relief scheme if a person purchased goods or services during the period October 12, 2020, to March 31, 2021, instead of travelling.<\/p>\n<p>These goods and services should be subject to a <a href=\"https:\/\/www.caindelhiindia.com\/blog\/application-of-gst-on-contribution-by-rwa-members\/\">GST <\/a>of <em><u>12%<\/u><\/em> or more and payments should be made in an electronic medium.<\/p>\n<p>For non-central government employees, the deemed LTC fare (as this tax relief is called) is up to Rs 36,000 per person and the entity has to pay 3 times the deemed fare in order to benefit from tax exemption.<\/p>\n<p>The Finance Minister is expected to be able to extend the LTC cash voucher scheme from March 2021 to FY 2021-22 in order to improve consumer demand in the economy. This is more so because it will take time to return to its flourishing avtaar for actual travel.<\/p>\n<ol start=\"2\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Planning_to_expand_the_Section_80D_%E2%80%93_Deduction_for_premiumsexpenses_for_medical_insurance\"><\/span><span style=\"color: #000080;\"><strong> Planning to expand the Section 80D &#8211; Deduction for premiums\/expenses for medical insurance<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p><a href=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Inkedsection-80d_LI.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-10472\" src=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Inkedsection-80d_LI-1024x612.jpg\" alt=\"\" width=\"1127\" height=\"673\" srcset=\"https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Inkedsection-80d_LI-1024x612.jpg 1024w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Inkedsection-80d_LI-300x179.jpg 300w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Inkedsection-80d_LI-768x459.jpg 768w, https:\/\/carajput.com\/blog\/wp-content\/uploads\/2021\/01\/Inkedsection-80d_LI.jpg 1155w\" sizes=\"(max-width: 1127px) 100vw, 1127px\" \/><\/a><\/p>\n<p>Current tax laws allow individual taxpayers to receive a medical insurance premium tax credit for themselves and their families.<\/p>\n<p>In view of the current situation, the common man expects the finance minister to liberalize section 80D provisions and extend its reach to include medical expenditure on COVID-19 or any other illness sustained by taxpayers, without restricting the age or availability of medical insurance.<\/p>\n<p>In addition, under section 80D, the currently recommended limits (Rs 25,000 to Rs 100,000, depending primarily on the age of the person and the coverage of family members) are not in line with the possible cost that an individual may incur. It is a demand that the total limit be raised to represent the reality on the ground.<\/p>\n<ol start=\"3\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Charge_on_long_term_capital_gains\"><\/span><span style=\"color: #000080;\"><strong> Charge on long term capital gains<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Equity markets are at an all-time high and have stabilized from the downturn at the start of the outbreak of COVID-19. There is a clear argument that <a href=\"https:\/\/carajput.com\/blog\/tag\/long-term-capital-asset\/\">long-term capital gains<\/a> are not affected by the tax rate (earned from the sale of shares on a stock exchange platform or equity mutual funds).<\/p>\n<p>The government, however, may look to raise the rate of tax on such capital gains from the current 10 percent in order to obtain additional revenue. In addition, for taxpayers who own more than 2 properties, the tax rate on profits earned from the selling of home property can be raised.<\/p>\n<p>The reform around the taxation of employee stock option profits &#8211; i.e. deferment of taxation to the event of selling of shares instead of taxation at the time of allotment of shares &#8211; is a long-running request that has maybe become more relevant in the last year. This will ensure more liquidity in individuals&#8217; hands, especially with salary cuts replaced by stock options.<\/p>\n<ol start=\"4\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Tax-deductible_infrastructure_bond_re-introduction\"><\/span><span style=\"color: #000080;\">Tax-deductible infrastructure bond re-introduction<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>There is also discussion regarding the potential for the government to reintroduce tax-deductible infrastructure bonds where taxpayers subscribing to bonds are entitled to claim the deduction (subject to certain limits) of such expenditure from their gross income.<\/p>\n<p>It will serve the dual purpose of providing taxpayers with a tax benefit as well as the much-needed inflow to enhance the infrastructure sector for the nation.<\/p>\n<ol start=\"5\">\n<li>\n<h3><span class=\"ez-toc-section\" id=\"Estate_dutytax_on_inheritance\"><\/span><span style=\"color: #000080;\">Estate duty\/tax on inheritance<\/span><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<\/li>\n<\/ol>\n<p>Another subject that is much debated is the implementation of estate duty or inheritance tax. Since 1985, when estate duty was abolished, the re-introduction controversy has emerged every now and then.<\/p>\n<p>However, due to the extreme effect of COVID 19 on individuals\/businesses, such a levy is unlikely to be introduced in the current Union Budget.<\/p>\n<p>There seems to be mention of imposing a tax or duty on high-end luxury goods, but considering that the surcharge rates were just raised in 2019 (making the highest tax rate 42.7 %), in terms of expectations vs. real income collections, this will again take a lot of thought.<\/p>\n<p>The Finance Minister Nirmala Sitharaman has their job cut out &#8211; this year is harder than others and apart from taxes or other problems concerning the personal finances of an individual, there are several issues of discussion &#8211; e.g. the new labor codes where there will be a possible effect on the net take home.<\/p>\n<p>What we can perhaps say is that the probability of relief, cuts, and sops is not quite realistic with the fiscal deficit, but one can only predict &#8211; Feb 1 is going to be the day to look out for<\/p>\n<p>Popular blog:-<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/taxpayers-should-be-aware-of-6-income-tax-reforms-in-the-union-budget-2021\/\">Budget 2021- key highlight <\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/budget-2021-will-start-changing-existing-business-processes\/\">Overview of Union Budget 2021 Highlight<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/budget-2021-will-be-completely-paperless-first-after-independence\/\">Budget 2021\u00a0 will be\u00a0 completely paperless-\u00a0 First after independence<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/carajput.com\/blog\/budget-2021-will-start-changing-existing-business-processes\/\">Budget \u00a02021\u00a0 will start\u00a0 changing existing business process<\/a><\/strong><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Lists types of insurance along with their meanings. Life Insurance : Meaning: Provides financial protection to beneficiaries in case of the policyholder&#8217;s death. Health Insurance : Meaning: Covers medical expenses for illnesses, surgeries, and hospitalization. Motor Insurance : Meaning: Offers coverage for damages to vehicles and third-party liabilities. Travel Insurance : Meaning: Covers unforeseen travel-related &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9767],"tags":[9666],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10470"}],"collection":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/comments?post=10470"}],"version-history":[{"count":5,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10470\/revisions"}],"predecessor-version":[{"id":30536,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/posts\/10470\/revisions\/30536"}],"wp:attachment":[{"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/media?parent=10470"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/categories?post=10470"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carajput.com\/blog\/wp-json\/wp\/v2\/tags?post=10470"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}