Budget 2019 Expectations: Here is what Modi government can do to provide income tax benefits for home buyers

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New Delhi | Updated: January 22, 2019 3:01:50 PM

Indian Union Budget 2019 Expectations: The Central government should make home insurance compulsory and incentivise home buyers by providing income tax benefits for the premium paid towards a policy.

India Union Budget 2019 ExpectationsBudget 2019 expectations

Tax Payers’ Expectation from Upcoming Union Budget 2019-20: The Modi government will present its final budget before the Lok Sabha elections 2019. As the country’s economy has been going through a critical phase of growth, people hold many expectations from Union Budget 2019-20. Given the uncertain natural of natural calamities, Shreeraj Deshpande, Principal Officer and Key Managerial Personnel, Future Generali India Insurance if of the view that Finance Minister Arun Jaitley should make home insurance compulsory.

“The government should make home insurance compulsory and incentivise home buyers by providing income tax benefits for the premium paid towards a policy,” Shreeraj Deshpande has said. “This will not only ensure protection against financial loss for customers but also aid in deepening insurance penetration in the country,” Deshpande said.

Apart from this, the central government should revise the 80 D limits for Health Insurance premiums under IT Act and further reduce the GST for health insurance premiums especially for retail policies, said Deshpande. Deshpande recommended the central government to make health insurance mandatory either through membership of Government schemes or a policy from commercial insurer citing that this would help achieve a goal of universal health.

Read Also: Budget 2019- No room for big corporate tax cut; effective rate for large companies already less than 25%

Deshpande stated that medical inflation is growing at 14-16 per cent every year and the healthcare expenses of the average household can easily exceed the medical allowance limit of Rs 15000 per annum. Companies usually cap the medical allowances at the tax-free limit of Rs 15000. If this limit is revised upwards, the companies will also be encouraged to hike the allowance, he said.

FM Jaitley will present Budget 2019 on February 1. The Finance Minister did not attend the customary “Halwa Ceremony’ since he is in the US for medical reasons. The Economic Survey 2019 would not be presented this year. The outgoing government generally presents an interim budget before the Lok Sabha elections. The newly-elected government presents a full-fledged budget.

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