I-T exemption for non-profit hospital donations mooted

NITI Aayog pitches for 100% I-T exemption for donations to non-profit hospitals

It also suggested provision of working capital loans with lower interest rates for not-for-profit hospitals

Representative image. Credit: iStock Photo

The Centre’s policy think-tank Niti Aayog has pitched for 100 per cent income tax exemption on donations for not-for-profit hospitals to help augment much needed funds and strengthen healthcare services in India and, urged the government to tap their expertise in policy-making for health sector.

"Income-tax exemption could be increased from the current 50 per cent to 100 per cent for philanthropy towards the identified not-for-profit hospitals. This could be a catalyst in channelising the much needed funds to deserving hospitals," a report  'Not-for-Profit Hospital Model in India' by Niti said.   

Read more: Low investment in health sector's private domain; stimulus could be game-changer: V K Paul       

“The not-for-profit hospitals have vast experience in providing low-cost high-quality care to the unreached sections of society, some of them existing since before India’s Independence, yet, they remain largely unknown and understudied. To obtain a comprehensive understanding of the sector, and to tap into this vast expertise, the representatives of high-performing not-for-profit hospitals across different geographical locations can be invited to relevant policymaking committees,” it said.

It also suggested provision of working capital loans with lower interest rates for not-for-profit hospitals and involving high performing hospitals in public private partnership (PPP) models for managing primary health care (PHCs), operations of government facilities and PSU hospitals.        

The report also stressed on need for developing mechanisms to rank not-for-profit hospitals on a performance index, creation of a rating scale based on the volume of services utilised annually, the extent of charity work done, impact on the community health indicators of the location, operational efficiency, and self-sufficiency.         

"Create a national level portal/directory of these hospitals in the public domain, wherein all the not-for-profit hospitals can be listed to highlight the hospital and its functions in the public domain," it suggested.

 

Get a round-up of the day's top stories in your inbox

Check out all newsletters

Get a round-up of the day's top stories in your inbox