Abstract
Healthcare has become one of India’s largest sectors, in terms of both revenue and employment. Healthcare comprises hospitals, medical devices, clinical trials, outsourcing, telemedicine, medical tourism, healthcare insurance, and medical equipment. According to Govt. of India’s budget 2021, India’s public expenditure on healthcare stood at 1.2% of the GDP. Most of the healthcare expenses in India are borne by the patients and their families. Healthcare insurance is also gaining momentum in India. By the year 2022, Indian healthcare market is expected to grow threefold, amounting to ₹ 8.6 trillion (US$ 133.44 billion). Taxes in India are levied by the central government and the state government. Some minor taxes are also levied by the local authorities such as the municipalities and local governments. The Government of India has been encouraging the development of healthcare sector by providing various tax incentives, rebates, and deductions from the gross total income to individuals as well as to the public and private organizations. This chapter discusses about the healthcare sector of India, the budgetary allocation and spending towards healthcare sector, taxation of healthcare sector, and the different tax sops and incentives that are provided to the healthcare sector in India.
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Notes
- 1.
Income Tax India, Deduction in respect of donations to certain funds, charitable institutions, etc. https://incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=act&cname=cmsid&cval=102120000000075772&searchfilter=%5B%7B%22crawledpropertykey%22:1,%22value%22:%22act%22,%22searchoperand%22:2%7D,%7B%22crawledpropertykey%22:0,%22value%22:%22income-tax+act,+1961%22,%22searchoperand%22:2%7D,%7B%22crawledpropertykey%22:29,%22value%22:%222020%22,%22searchoperand%22:2%7D%5D&k=&isdlg=0.
- 2.
Income Tax India, Section 4.11, https://incometaxindia.gov.in/Pages/i-am/trust.aspx?k=Exemptions.
Abbreviations
- AB:
-
Autonomous Bodies.
- BE:
-
Budget Estimate.
- FY:
-
Financial Year
- FWS:
-
Family Welfare Schemes.
- GDP:
-
Gross Domestic Product.
- INR:
-
Indian Rupee
- MoHFW:
-
Government of India, Ministry of Healthcare and Family Welfare
- NASCP:
-
National AIDS & STD Control Program.
- NHM:
-
National Health Mission.
- PMJAY:
-
Pradhan Mantri Jan Arogya Yojana.
- RE:
-
Revised Estimates.
- RSBY:
-
Rashtriya Swastha Bima Yojna.
- USD:
-
United States Dollar.
- WHO:
-
World Health Organization
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Kadyan, J.S. (2023). Taxation of Healthcare Sector in India. In: Çalıyurt, K.T. (eds) Integrity, Transparency and Corruption in Healthcare & Research on Health, Volume II. Accounting, Finance, Sustainability, Governance & Fraud: Theory and Application. Springer, Singapore. https://doi.org/10.1007/978-981-99-5502-2_4
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