Government of India: Don't Tax Medical Bills


Government of India: Don't Tax Medical Bills
The Issue
The last two months have been a nightmare for lakhs of people all across India. We have been running around, day and night, looking for life-saving medicines, oxygen cylinders, concentrators, and finally hospital beds, often being forced to source them at exorbitant prices.
I don’t have words to express the suffering and loss of loved ones that we have borne. But alongside that, even as lockdowns and economic slowdown have depleted incomes, lakhs of families have incurred unprecedented medical expenses to procure supplies and services which the government ought to have provided, that have burned a hole through their pockets.
The lives lost cannot be redeemed and the suffering undergone cannot be wished away. Nor can the government return our money.
There is, however, one thing that can still be done, and, in fact, ought to have been done already. And that is making medical expenses, without any ceiling, a deductible expense for income tax purposes for FY 2020-21 and from now on.
Sign my petition. #DontTaxMedBills
A large percentage of our population still does not avail of private health insurance and has been forced to bear the cost of medical treatment from their own pockets.
While anyone who has faced a medical emergency and has had to bear the cost of hospitalisation of a family member has faced this before, COVID-19 and its expensive treatment protocols have highlighted this and turned it into a pressing national issue.
Under Section 80D(2)(a) and (c) of the Income Tax Act, 1961, the insurance premium and medical expenditure incurred by an assessee for themselves, their spouse and dependent children are allowed as a deduction from income up to a maximum of Rs 50,000, and under Section 80D(2)(b) and (d), the insurance premium and medical expenses incurred on the parents of the assessee are allowed as a deduction up to a maximum of another Rs. 50,000. What this means is that any expenditure on medical treatment over and above Rs 50,000 under either of these heads that you may have incurred in a given year will be subject to income tax. You now know that this limit of Rs 50,000 would have been exhausted just on oxygen supply for one family member suffering from COVID-19. And these limits are for the entire family for the entire year. Why should there be any cap on the deduction of medical expenses?
Fellow citizens, by way of contrast, a donation made to the PM-CARES Fund is eligible for 100% deduction under Section 80G of the Income Tax Act whereas the money we spent on RTPCRs, injections, blood tests, O2, and hospitalisation is taxable! Is this fair?
Please sign my petition asking the Government to ensure that medical expenses are allowed as a deduction without any ceiling and are spared taxation. This relief has to be given immediately for COVID-19 related medical expenses, but there is no reason why it should be limited to that.
When thousands of you sign my petition, lakhs of families will get relief. However little, this will still be a band-aid on our wounds.
52,887
The Issue
The last two months have been a nightmare for lakhs of people all across India. We have been running around, day and night, looking for life-saving medicines, oxygen cylinders, concentrators, and finally hospital beds, often being forced to source them at exorbitant prices.
I don’t have words to express the suffering and loss of loved ones that we have borne. But alongside that, even as lockdowns and economic slowdown have depleted incomes, lakhs of families have incurred unprecedented medical expenses to procure supplies and services which the government ought to have provided, that have burned a hole through their pockets.
The lives lost cannot be redeemed and the suffering undergone cannot be wished away. Nor can the government return our money.
There is, however, one thing that can still be done, and, in fact, ought to have been done already. And that is making medical expenses, without any ceiling, a deductible expense for income tax purposes for FY 2020-21 and from now on.
Sign my petition. #DontTaxMedBills
A large percentage of our population still does not avail of private health insurance and has been forced to bear the cost of medical treatment from their own pockets.
While anyone who has faced a medical emergency and has had to bear the cost of hospitalisation of a family member has faced this before, COVID-19 and its expensive treatment protocols have highlighted this and turned it into a pressing national issue.
Under Section 80D(2)(a) and (c) of the Income Tax Act, 1961, the insurance premium and medical expenditure incurred by an assessee for themselves, their spouse and dependent children are allowed as a deduction from income up to a maximum of Rs 50,000, and under Section 80D(2)(b) and (d), the insurance premium and medical expenses incurred on the parents of the assessee are allowed as a deduction up to a maximum of another Rs. 50,000. What this means is that any expenditure on medical treatment over and above Rs 50,000 under either of these heads that you may have incurred in a given year will be subject to income tax. You now know that this limit of Rs 50,000 would have been exhausted just on oxygen supply for one family member suffering from COVID-19. And these limits are for the entire family for the entire year. Why should there be any cap on the deduction of medical expenses?
Fellow citizens, by way of contrast, a donation made to the PM-CARES Fund is eligible for 100% deduction under Section 80G of the Income Tax Act whereas the money we spent on RTPCRs, injections, blood tests, O2, and hospitalisation is taxable! Is this fair?
Please sign my petition asking the Government to ensure that medical expenses are allowed as a deduction without any ceiling and are spared taxation. This relief has to be given immediately for COVID-19 related medical expenses, but there is no reason why it should be limited to that.
When thousands of you sign my petition, lakhs of families will get relief. However little, this will still be a band-aid on our wounds.
52,887
The Decision Makers
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Petition created on 26 May 2021