Budget 2024-25: What’s in Store for Health Insurance?
Modi 3.0 Government is all set to unveil the Union Budget for 2024-25 on July 23. This is the 7th consecutive budget presented by Nirmala Sitharaman, making her the first finance minister to achieve this milestone, surpassing Morarji Desai, who presented six consecutive budgets.
Now, Indians are eagerly awaiting the budget with a lot of expectations and hopes in terms of tax rebates.
According to some reports, an increase in the deduction limit for medical insurance premiums is anticipated under Section 80D of the Income Tax Act. This is because the deduction limit was last increased from ₹15,000 to ₹25,000 in Budget 2015. Since then, there has been no further change despite the increased rates of premiums and medical treatment costs.
But do you know what the present deduction limit is under Section 80D?
Under Section 80D of the Income Tax Act of 1961, the deduction benefits of health insurance premiums are
- ₹25,000: For individuals under 60 years of age
- ₹50,000: For senior citizens.
Now, the anticipated increased tax deduction limits under Section 80D are ₹50,000 for individuals and ₹75,000 for senior citizens.
Also, to encourage individuals to enhance their coverage beyond the basic health insurance plans, the government may introduce separate or additional tax deductions for premiums paid towards top-up and super-top-up health insurance plans.
In short, these tax rebates, if implemented, will encourage more and more people to buy health insurance. It will also reinforce the idea that “health coverage is not just a privilege but a fundamental right for all,” which ensures an individual’s safety and financial security in critical times.
