Budget 2025 Health Insurance: Preparations are being made to provide relief to the common man in Budget 2025. The government is considering increasing the tax deduction limit for health insurance.
Budget 2025 Health Insurance: Taxpayers can get great news from the upcoming budget. Especially those taxpayers who take health insurance and claim tax exemption under Section 80D. Actually, preparations are being made to give relief to the common man in Budget 2025.
The government is considering increasing the tax deduction limit of health insurance. At present, a maximum of ₹ 25,000 exemption is available on health insurance premium under Section 80D, according to sources, it can be increased to ₹ 50,000. In view of rising inflation and healthcare expenses, this step can bring great relief to taxpayers.
Existing tax exemption on health insurance
- – Deduction is available under section 80D.
- – ₹25,000: On health insurance for self, wife, and children.
- – ₹50,000: For senior citizen parents.
- – Total deduction: Maximum ₹75,000.
- The last change was made in the year 2018
Finance Minister Arun Jaitley had increased the limit of exemption on health insurance premium for senior citizens from ₹30,000 to ₹50,000 in the 2018 budget. However, for non-senior citizens, this limit still remains at ₹25,000.
Effect of inflation
Due to the continuous increase in healthcare and medical expenses, the current exemption is not considered sufficient. Therefore, the industry also demands that it should be increased. Experts also believe that if the health insurance exemption is increased, taxpayers will not only benefit, but confidence will also increase to buy insurance.
What can be the change?
According to sources, the exemption limit can be increased. The exemption available under section 80D can be increased to ₹ 50,000. This can double the tax savings on health insurance premium.
More relief to senior citizens
The exemption for senior citizens can be increased from ₹ 50,000 to ₹ 1 lakh.
Exemption can also be included in the new tax regime
At present, the exemption of section 80D is available only in the old tax regime. According to sources, the government is considering including it in the new tax regime as well.
What will be its effect?
Increasing the discount on health insurance premium will encourage people to buy plans with higher premiums, which will enable them to get better health services. Taxpayers will get great relief.
Scope of health insurance will increase
With the increase in tax exemption, more people will buy health insurance. This will benefit insurance companies and the healthcare sector.
Improvement in financial security
To avoid big medical expenses, people will invest in long-term insurance plans.
Why is health insurance important?
Health insurance is a very big and important tool in view of the rising medical expenses. From hospitalization to medicines and tests, healthcare expenses are increasing rapidly every year.
Covid-19 taught a lesson
Everyone understood the importance of health insurance during the pandemic.
Protection with tax savings
Health insurance not only provides financial security, but also gives you an opportunity to save tax.
What is expected from the government?
Exemption under section 80D should be increased. Health insurance exemption should be included in the new tax regime. Senior citizens should be given more benefits.
Waiting for the budget day
If the government increases the tax exemption limit on health insurance in Budget 2025, it will prove to be a big gift for the common man. Given the rising inflation and healthcare expenses, this change is the need of the hour. Now it remains to be seen what Finance Minister Nirmala Sitharaman announces regarding the health sector on February 1, 2025.
