16 Feb 2015
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
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.