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HomePersonal FinanceTax deduction limit: Great news for taxpayers! Tax deduction 80D limit can...

Tax deduction limit: Great news for taxpayers! Tax deduction 80D limit can increase in Budget, will get ₹25,000 benefits

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Budget 2025 Health Insurance: 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.

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 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.

Current tax exemption on health insurance

– Exemption is available under section 80D.

– ₹25,000: On health insurance for self, wife, and children.

– ₹50,000: For senior citizen parents.

– Total exemption: Maximum ₹75,000.

Last change was made in the year 2018

Finance Minister Arun Jaitley had increased the exemption limit 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.

Impact of inflation

Due to the continuous increase in healthcare and medical expenses, the current exemption is not considered sufficient. Therefore, there is also a demand from the industry that it should be increased. Experts also believe that if the health insurance exemption is increased, then taxpayers will not only benefit, but also their confidence to buy insurance will increase.

What changes can be made?

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 exemption on health insurance premium will motivate people to buy plans with higher premiums, which will enable them to get better health services. Taxpayers will get great relief.

The 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 increasing 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.

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Deepak Kumar
Deepak Kumar
Deepak Kumar has 2 years of experience in writing Finance Content, Entertainment news, Cricket and more. He has done BA in English. He loves to Play Sports and read books in free time. In case of any complain or feedback, please contact me @deepakmaurya152004@gmail.com
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