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Economic Times
7 hours ago
- Health
- Economic Times
Think Rs 5 lakh health insurance is enough? Here's why only a Rs 1 crore health customised cover is likely to be sufficient
Getty Images Hiking your insurance cover from Rs 1 lakh to Rs 1 crore does not imply that your premiums are also going to jump up significantly. In India's fast-changing healthcare landscape, medical costs are rising faster than income, inflation, and expectations. While advanced treatments are improving, they also bring growing financial pressure on individuals and families unprepared for emergencies. Most Indian households today are well aware of health risks from lifestyle diseases, the environment, and longer lifespans. Yet, financial preparedness, especially via health insurance, lags. We still treat insurance premiums as a commodity cost. We search for the lowest number, equating affordability with adequacy. In reality, the cheapest policy may be the most expensive mistake. Cracking the premium code in 2025 demands a rethink of what health insurance means, what it should deliver, and how we must align it with the new economics of look at the numbers. Over the past decade, the cost of hospitalisation, advanced procedures, and even routine diagnostics has climbed dramatically. Heart surgeries, cancer treatments, and critical care interventions now routinely cross the Rs.30-40 lakh mark. Cataract surgery, once considered minor, can now cost over 1 lakh in a top hospital. These are indicators of a structural shift in healthcare pricing, driven by better medical technology, global standards of care, and increasing demand. At the same time, medical inflation in India has consistently hovered at 13-14% annually—double the pace of general inflation and far beyond the wage growth for most Indians. Some years, it has surged as high as 20%. This is not a spike; it's a trend. Over the past decade, the cost of major medical procedures has surged. A kidney transplant that cost around Rs.5 lakh in 2013 now exceeds Rs.18 lakh. A heart transplant, in some cases, can cost up to Rs.34 lakh. In this context, insurance covers of Rs.3-5 lakh are no longer adequate; they reflect an outdated cost structure. If we continue to treat premiums as just another line item in our budgets, rather than a bulwark against financial distress, we will continue to be caught unprepared. Rising cost of critical care over the years Therefore, a Rs.1 crore health cover isn't a luxury; it's the new normal. It reflects the real cost of care today and anticipates the increasing complexity of medical interventions tomorrow. It is not just about critical illness. It's about diagnostics, consultations, follow-ups, mental health services, pre- and post-hospitalisation costs, and the growing expectation of quality care across every touchpoint. The comprehensive nature of healthcare today demands comprehensive financial coverage— and a rebalancing of what consumers consider 'adequate.'The good news is that increasing your health cover from Rs.10 lakh to Rs.1 crore doesn't mean your premium will go up 10 times. For a young couple in their mid-30s, a Rs.1 crore plan can cost around Rs.2,000 to Rs.2,500 per month— only about 10-15% more than a Rs.10 lakh policy, but with much stronger protection. The urgency of higher coverage is also reflected in how claim trends are shifting. In 2024-25, heart-related claims made up nearly 20% of total health insurance claims, up from around 10% five years earlier. Also, the average claim size for such cases has surged from Rs.4-5 lakh in 2019-20 to Rs.14-17 lakh today. Interestingly, the industry is evolving to match the shift. Insurers are designing more inclusive products, offering higher coverage limits, cashless treatments across wider hospital networks, and support services that extend well beyond hospitalisation. The market is responding not just to rising claims but to changing consumer alone are not enough. There is a growing responsibility for all stakeholders to reframe the consumers' approach to insurance. Premiums should be viewed as investments in resilience. Higher coverage should be encouraged. The long-term value of insurance must be placed front and centre, not just its annual price also a macroeconomic angle to this conversation. A financially unprepared population facing unpredictable health costs creates downstream effects: reduced productivity, increased household debt, and rising pressure on public health infrastructure. In a country where out-of-pocket healthcare spending still forms a major share of total expenditure, underinsurance is not just a personal risk; it's a systemic one. By helping more people access meaningful protection, we are safeguarding households and reducing the social costs of delayed or inadequate the premium code, then, is not about finding the lowest number. It's about asking the right questions: Will this coverage hold up five years from now? Can this policy support me through a complex medical episode? Does it enable me to act early and decisively when a health issue arises?India is on the cusp of a healthcare transformation, but for it to be inclusive, we must build financial resilience into the very design of that journey. That begins by treating the premium not as a price, but as a promise. The Auhtor is JOINT GROUP CEO, PB FINTECH
Time of India
7 hours ago
- Business
- Time of India
Filing ITR for FY2024-25? Mistakes in HRA claims, capital gains tax calculation are among 7 errors to avoid
wrong ITR forms,not filing returns Live Events Don't miss these tax filing deadlines Your annual income before deductions and exemptions is… Less than Rs.2.5 lakh in old tax regime. Less than Rs.3 lakh in old tax regime if you are between 60 and 80. Less than Rs.5 lakh in old tax regime if you are over 80. Less than Rs.3 lakh in new tax regime. You are over 75, with only income being pension and interest from the same bank, and the bank has deducted tax. You have a tax refund due. You have a TDS/ TCS refund due. You need to apply for a loan, passport or visa. You want to carry forward losses from business/ profession or under capital gains head in the future. You have a foreign income or hold foreign assets. You are a company or a firm, regardless of profit or loss. You have deposited Rs.50 lakh or more in savings account, or Rs.1 crore or more in current account. You have spent Rs.2 lakh or more on foreign travel. Your electricity consumption is over Rs.1 lakh. Your aggregate TDS/ TCS is more than Rs.25,000 (Rs.50,000 for senior citizens). You have a business turnover of over Rs.60 lakh, or professional turnover of more than Rs.10 lakh. incorporating Budget 2024 changes checking AIS & Form 26AS disclosing all sources of income reporting exempt income adding income from former employer in HRA claims HRA claim mistakes: Red flags for tax authorities You have no formal rent agreement. You have no proof of bank transactions. Incorrect PAN of landlord (for over Rs.1 lakh a year rent). Rental address is not authentic. Your HRA claim differs from that of employer. It may not always be mandatory, but its absence can raise suspicion. Tax department can check bank statements. It's easily caught through PAN verification. Mismatch with address in Aadhaar card or other official records can catch it. Employer submits details of HRA exemption in Form 16. Comply with these Budget 2024 changes At the very onset of the tax filing season, taxpayers have received a bonus—a 45-day extension for filing returns . The deadline has been shifted from 31 July to 15 September to accommodate the extensive structural changes in ITR forms introduced by the Budget 2024. While the extension may be welcomed by many, you could still end up with errors in your returns due to these with new changes may not be the only mistake you make. Despite technological improvement in online tax filing, taxpayers end up with several errors. 'The pre-filled data from Form 16 , 26AS, AIS/TIS, real-time validation and auto-calculations have reduced the chances of errors, but if the data you provide and confirm is not correct, it may lead to mistakes in the return,' says Kuldip Kumar, Partner, Mainstay Tax mistakes cover a wide gamut, ranging from picking wrong ITR forms, misreporting or not reporting income, not reconciling income and taxes, to making mistakes in HRA claims or while changing jobs. These can result in faulty tax computation, income tax notices, penalties, re-filing of returns and delayed refunds. To help you avoid these, we list some such of the most common mistakes are seemingly simple, yet problematic—picking the wrong ITR form, not verifying the submitted return, not adhering to deadlines, or assuming one doesn't need to file returns at all.'Different income sources and taxpayer categories require specific ITR forms and using an incorrect form can lead to rejection or processing delays,' says Umesh Kumar Jethani, Founder, picking ITR forms this year, remember that you can use ITR 1 form if you have up to Rs.1.25 lakh in long-term capital gains (LTCG) from shares or equity mutual funds, instead of the more complicated ITR 2 or 3 mandated common mistake is thinking that you are exempt from filing returns because you have zero tax liability. A full tax rebate under Section 87A is available for individuals with taxable incomes up to Rs.7 lakh in the new tax regime and Rs.5 lakh in the old regime, making income up to Rs.7 lakh (or Rs.5 lakh) tax-free. This doesn't mean you may not have to file tax returns. If you have incurred certain expenses (over Rs.2 lakh in foreign travel, Rs.1 lakh in power consumption, among others), it is mandatory for you to file returns. Similarly, if you are eligible for a tax/TDS refund or have to carry forward losses, you will not be able to claim it without filing returns.'Only individuals with total taxable income below the basic exemption limit are not required to file returns. Under the new tax regime, this limit is Rs.3 lakh, and Rs.2.5 lakh in the old regime for those below 60,' says Amit Maheshwari, Tax Partner, AKM date for filing updated return for financial year date to file tax return for salaried taxpayers and those not requiring an audit, for financial year 2024-25 (assessment year 2025-26).You can file a belated tax return till 31 December 2025, though you will have to pay a penalty and interest. The late filing fee is Rs.1,000 if your income is less than Rs.5 lakh, and Rs.5,000 if the income is more than Rs.5 lakh. The interest will be 1% per month on the unpaid tax from the due date till the return is individuals and professionals requiring audit for financial year 2024-25 (assessment year 2025-26).You can file a belated tax return till 31 December 2025, though you will be charged the same penalty as that for breaching the 15 September deadline. In addition to this, the assessing officer can levy a penalty of `1.5 lakh or 0.5% of turnover, whichever is date to file revised or belated tax return if you miss the 15 September can file an updated return till four years from the end of the relevant assessment year. However, you will have to pay an additional tax at the rate of 25%, 50%, 60% and 70% of the tax for the first, second, third and fourth years, respectively, depending on the year in which you file.'In case of wilful default, even prosecution proceedings may be initiated under Section 276CC. There is a provision of imprisonment of six months to seven years with a fine, where tax evaded is more than Rs.25 lakh, and from three months to two years with a fine, in other cases,' says the tax return has been filed after the due date (15 September this year), you can be penalised up to Rs.5,000 under Section 234F (see 'Don't miss these tax filing deadlines'). This is besides the 1% per month interest you will be levied for unpaid tax. As far as updated returns are concerned, you can file till four years after the relevant assessment year, as per the change announced in last year's out the conditions under which you are exempted from filing returns and when it's compulsory to do most likely mistakes this year could be related to the changes introduced by the Budget 2024. There are not only structural changes in the ITR forms that require compliance by taxpayers (see 'Comply with these Budget 2024 changes'), but also deductions and capital gain taxation changes that could lead to calculation errors.'Removal of indexation from long-term capital gain calculation is the biggest change from Budget 2024, for which the cut-off date is 23 July 2024,' says Shubham Agrawal, Senior Taxation Adviser, TaxFile. in. Both the capital gain taxation rates and holding periods have been rationalised (see 'Capital gain rates…'). While long-term gains from listed shares and equity funds will be taxed at 12.5% without indexation, short-term gains will be taxed at 20%, up from 15% the capital gains schedule has also been modified to report gains separately for periods before and on or after 23 July 2024. What this means is that taxpayers will now have to bifurcate their gains based on whether the transfer occurred before or after this other changes, remember that while using ITR forms 1, 2, 3 and 5, you can only use your Aadhaar number, not the Aadhaar enrolment ID. 'Besides, the new tax regime has become the default tax regime, and if you wish to opt for the old tax regime, you will have to explicitly choose it by filing Form 10-IEA before filing your ITR,' says mistake many people make before filing their tax returns is not checking the Annual Information Statement (AIS) and Form 26AS , which provide a summary of all their transactions and taxes.'Form 26AS is a tax credit statement that primarily serves as a summary of taxes credited against a taxpayer's PAN,' says Raj Lakhotia, Managing Partner, LABH & Associates. It includes details such as tax deducted at source (TDS), tax collected at source (TCS), advance tax and self-assessment tax payments, refunds issued by the Income Tax Department, and details of specified high-value transactions like property purchases, mutual fund investments, AIS, on the other hand, is more comprehensive and reflects both the reported value and that accepted or modified by the taxpayer, enabling users to verify the information and submit feedback, in case of discrepancies. This information includes interest income from savings accounts, fixed deposits and recurring deposits, dividend income, securities transactions like purchase and sale of shares, mutual funds, rent received, foreign remittances, high-value credit card spends, among reconcile the data, first compare the information in AIS and Form 26AS with your own financial statements, Form 16, bank statements, and investment proofs. 'If there are any mismatches (TDS not reflected, incorrect income figures), contact the deductor (employer, bank) to get it rectified,' says Jethani.'Reconciliation of both with the ITR helps avoid discrepancies, prevents underreporting or duplicate claims, facilitates faster processing of returns and refunds, and avoids tax notices,' says you fail to list all your incomes by mistake or intentionally, it can prove very expensive. 'Since most filings are based on AIS and TIS, people only refer to these, but there is the risk of missing out incomes on which TDS is not deducted, such as interest on sovereign gold bonds or rent for residential property if it is less than Rs.50,000 a month,' says Agrawal.'It's also easy to miss out on interest from savings accounts, fixed and recurring deposits, crypto, or freelance, rental and foreign incomes,' says Sudhir Kaushik, Founder & CEO, frequently overlook categories of income that are accrued but not received, or not actively tracked, such as capital gains from sale or redemption of shares, mutual funds, real estate, or other capital assets, and dividend income, especially when credited without TDS or reinvested,' says income that is typically not included is the one derived from assets transferred to the spouse without consideration, or income from minor children. 'Also, in case of sale of jointly owned property with spouse but funded only by one, people report capital gains proportionately in both the returns, rather than in the return of the spouse who funded it,' says gain rates & holding periods have changedDepending on whether it is underreporting or misreporting of income, it can result in a penalty of 50-200% of the due tax, besides interest liability and even risk of prosecution in extreme exempt income is not a part of your total taxable income, it is mandatory to report it under the appropriate section (Schedule EI). 'Non-reporting of such income may lead to a defective return, and if the defect is not rectified within the prescribed timeline,the return may be treated as invalid,' says Lakhotia. Agrees Kumar: 'With automated processes in place, it is likely to get noticed. This may result in waste of time and energy responding to notices and giving explanations why it was missed.'Exempt income that needs to be reported includes agricultural income; share of profit from a partnership firm; interest income from Public Provident Fund (PPF); interest income from tax-free bonds; gratuity and leave encashment (up to specified limits under Section 10(10AA)); maturity proceeds of life insurance policies (subject to conditions under Section 10(10D)); exempt portion of house rent allowance (HRA) under Section 10(13A); exempt portion of leave travel allowance/concession (LTA/LTC) under Section 10(5); commuted pension (up to specified limits under Section 10(10A)); Sukanya Samriddhi proceeds and interest earned; interest and maturity proceeds from Employees' Provident Fund (EPF), subject to specified conditions; and income of a minor child clubbed with the parent (exempt up to specified limit under Section 10(32)).When people change jobs within a financial year, they are likely to make the following accounting mistakes.: 'Both new and previous employers may independently apply basic exemption limit, standard deduction, and deductions under Chapter VI-A, especially if investment declarations have been submitted twice, resulting in double claiming of tax benefits and lower TDS deducted,' says Lakhotia.'Where such tax liability, net of TDS/TCS, is more than Rs.10,000, the employee will end up paying interest under Sections 234B and 234C if he doesn't pay advance tax,' cautions Kumar. 'Also, irrespective of the number of employers during the year, the standard deduction is capped at Rs.75,000 in the new regime,' says Form 16 from all employers and consolidate income and tax details as it can lead to incomplete income reporting and inaccuracies in TDS credits. 'Ensure all income, including any arrears, bonuses, or final settlement from the previous employer, is included,' says to check the TDS details in Form 16 and those reflected in Form 26AS may lead to missing mismatches, which can result in delays or tax notices.'The other common mistake is claiming exemption for gratuity or leave encashment exceeding the maximum amount specified in the Act if the employee does not keep track of claims in the previous employments,' says Kumar. Failure to account for these can cause errors in tax liability year, the Income Tax Department uncovered rent receipts worth Rs.1 crore by a single employee and bore down on the company employees who had used the same PAN multiple times to claim HRA exemption. Don't make the mistake of conducting fraud as it can result in hefty penalties, including a fine of up to 200% of the misreported exemption is available under the old tax regime to salaried employees as part of their salary structure. To claim it, you need to provide documentary proof, including a formal rent agreement, rent receipts and landlord's PAN (if annual rent exceeds Rs.1 lakh), to the employer, besides actually staying in a rented usage of fake or incorrect PAN details can be easily detected via PAN verification systems, while any mismatch in the rent paid by you and that received by the landlord is bound to get a tax notice. Another red flag for the tax authorites is a mismatch in the rental address and the one linked to Aadhaar or other official an employee fails to declare or submit proof to the employer, he can still claim HRA exemption at the time of filing returns under Section 10(13A). 'However, tax authorities could audit the return to verify the claim. So, preserve supporting documents, such as rent agreement, rent receipts, bank statements reflecting the payment of rent, and where the rent paid exceeds Rs.50,000 a month, evidence of tax deducted at source by the employee,' says Kumar.'You cannot claim exemption if you stay in your own house or with parents, unless you pay them rent with a valid formal agreement and genuine bank transactions for rent transfers,' says the taxpayer pays rent but doesn't receive HRA from employer, a separate deduction under Section 80GG is available up to Rs.5,000 a month, but is subject to following alterations need to be incorporated by taxpayers in their returns this who have long-term capital gains of up to Rs.1.25 lakh and are not carrying forward capital losses can now file using simpler ITR 1 form, instead of the previously mandated complex ITR 2 or ITR 3 forms. This is after the increase in LTCG exemption limit on listed equity shares and equity-oriented mutual funds from Rs.1 lakh to Rs.1.25 lakh in a financial 23 July 2024, the LTCG on listed equity shares and equity-oriented mutual funds will be taxed at 12.5% without indexation, from 10% earlier, while the short-term capital gains (STCG) will be taxed at 20%, from the earlier 15%. Taxpayers will have to bifurcate their gains based on whether the transfer occurred before or after this back of shares on or after 1 October 2024 will be considered as dividend in the hands of shareholders and should be reported as 'Income from other sources', instead of capital gains. It will be taxed at applicable slab rate without any deduction of the cost of year, you will need to mention the TDS section under which tax was deducted for income in 2024-25 if you are using forms ITR 1, 2, 3, or can file the tax returns this year for forms ITR 1, 2, 3 and 5 using only the actual Aadhaar number, not the Aadhaar enrolment timeline for filing updated returns (ITR-U) has been extended from 24 months to 48 threshold for reporting assets and liabilities in the tax return has been increased from Rs.50 lakh earlier to Rs.1 crore disabled individuals, taxpayers could earlier claim deduction under Section 80DD or Section 80U in the old regime by quoting Form 10-IA. Now, they will have to give acknowledgement number of disability certificates as well.
Business Standard
3 days ago
- Business
- Business Standard
Board of Equitas Small Finance Bank approves QIP issue of Rs 1250 cr
At meeting held on 30 May 2025The Board of Equitas Small Finance Bank at its meeting held on 30 May 2025 has approved raising of funds by way of issuance of such number of equity shares or any other eligible securities and / or other securities convertible into equity shares including warrants, or otherwise (collectively Securities) for an aggregate amount not exceeding Rs.1,250/- crore by way of Qualified Institutions Placement (QIP) and / or through any other permissible mode, in one or more tranches. Powered by Capital Market - Live News
Business Standard
3 days ago
- Business
- Business Standard
Volumes soar at Gujarat Pipavav Port Ltd counter
Gujarat Pipavav Port Ltd clocked volume of 329.02 lakh shares by 14:14 IST on NSE, a 29.25 times surge over two-week average daily volume of 11.25 lakh shares Elgi Equipments Ltd, Concord Biotech Ltd, R R Kabel Ltd, Sobha Ltd are among the other stocks to see a surge in volumes on NSE today, 30 May 2025. Gujarat Pipavav Port Ltd clocked volume of 329.02 lakh shares by 14:14 IST on NSE, a 29.25 times surge over two-week average daily volume of 11.25 lakh shares. The stock gained 7.21% to Rs.158.59. Volumes stood at 6.58 lakh shares in the last session. Elgi Equipments Ltd notched up volume of 54.71 lakh shares by 14:14 IST on NSE, a 8.83 fold spurt over two-week average daily volume of 6.19 lakh shares. The stock rose 8.50% to Rs.541.50. Volumes stood at 13.32 lakh shares in the last session. Concord Biotech Ltd witnessed volume of 12.67 lakh shares by 14:14 IST on NSE, a 8.12 times surge over two-week average daily volume of 1.56 lakh shares. The stock increased 3.69% to Rs.1,728.40. Volumes stood at 2.38 lakh shares in the last session. R R Kabel Ltd recorded volume of 11.35 lakh shares by 14:14 IST on NSE, a 7.56 times surge over two-week average daily volume of 1.50 lakh shares. The stock gained 7.00% to Rs.1,401.70. Volumes stood at 1.38 lakh shares in the last session. Sobha Ltd witnessed volume of 13.16 lakh shares by 14:14 IST on NSE, a 7.33 times surge over two-week average daily volume of 1.80 lakh shares. The stock increased 3.18% to Rs.1,432.70. Volumes stood at 1.64 lakh shares in the last session.
Business Standard
3 days ago
- Business
- Business Standard
Volumes soar at LMW Ltd counter
LMW Ltd recorded volume of 36954 shares by 10:46 IST on BSE, a 296.42 times surge over two-week average daily volume of 125 shares Gujarat Pipavav Port Ltd, Engineers India Ltd, Concord Biotech Ltd, Sobha Ltd are among the other stocks to see a surge in volumes on BSE today, 30 May 2025. LMW Ltd recorded volume of 36954 shares by 10:46 IST on BSE, a 296.42 times surge over two-week average daily volume of 125 shares. The stock lost 3.15% to Rs.16,840.00. Volumes stood at 126 shares in the last session. Gujarat Pipavav Port Ltd clocked volume of 11.51 lakh shares by 10:46 IST on BSE, a 15.05 times surge over two-week average daily volume of 76436 shares. The stock gained 8.21% to Rs.160.10. Volumes stood at 55833 shares in the last session. Engineers India Ltd clocked volume of 26.46 lakh shares by 10:46 IST on BSE, a 9.85 times surge over two-week average daily volume of 2.69 lakh shares. The stock gained 5.75% to Rs.229.95. Volumes stood at 10.02 lakh shares in the last session. Concord Biotech Ltd notched up volume of 37980 shares by 10:46 IST on BSE, a 6.02 fold spurt over two-week average daily volume of 6311 shares. The stock rose 5.03% to Rs.1,750.85. Volumes stood at 12180 shares in the last session. Sobha Ltd recorded volume of 37221 shares by 10:46 IST on BSE, a 5.6 times surge over two-week average daily volume of 6648 shares. The stock gained 3.28% to Rs.1,432.90. Volumes stood at 11681 shares in the last session.
