Categorized | Health Insurance

Tax-free medical reimbursement limit may be hiked

Posted on 16 Feb 2015 by Easypolicy

New Delhi: The government is reviewing the tax free medical reimbursement limit, currently fixed at Rs 15,000 a year, besides looking at making it more attractive for individuals to buy medical insurance policies.

As per the sources both the issues are being looked at ahead of the Budget with some indicating that there is a possibility that the limit on tax-free medical reimbursement from employers may be raised to Rs 25,000 a year, given the rising medical costs in the country.

The government which allows a deduction of Rs 15,000 a year for medical insurance premium paid for spouse, children as well as the policyholder, is looking at encouraging individuals to buy a higher cover. In case of senior citizens, the limit is Rs 20,000.