Budget 2025 Exclusive: You can get 'double' tax benefit on health insurance, ₹25,000 extra will be saved directly in your pocket!

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. 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 exemption of ₹ 25,000 is available on health insurance premiums under Section 80D, according to sources, it can be increased to ₹ 50,000. Given rising inflation and healthcare expenses, this step can bring great relief to taxpayers.

Current tax exemption on health insurance

- Exemption is available in Section 80D.

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

- ₹50,000: For senior citizen parents.

- Total exemption: Maximum ₹75,000.

The last change was made in the year 2018

In the 2018 budget, Finance Minister Arun Jaitley increased the exemption limit on health insurance premiums for senior citizens from ₹30,000 to ₹50,000. 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 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 premiums.

More relief to senior citizens

The exemption for senior citizens can be increased from ₹50,000 to ₹1 lakh.

The 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 premiums will encourage 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

People will invest in long-term insurance plans to avoid big medical expenses.

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 allows you to save on taxes.

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 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 announcement Finance Minister Nirmala Sitharaman will make regarding the health sector on February 1, 2025.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.