Tax-free medical expenses cap may be hiked

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.

Sources said 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.