health budget
Budget 2025: The central government has made clear its intention to discourage the old tax regime of tax exemptions. But taxpayers and tax experts believe that payment of health insurance premium should be seen as an exception to this. The deduction limit for health insurance premium under Section 80D of the Income Tax Act, 1961 was last increased nine years ago in the 2015 Budget from Rs 15,000 to Rs 25,000.
How much should the deduction limit be increased?
This deduction is available under the old, exempt tax regime. Experts say that for persons below 60 years of age, the deduction should be increased from the current Rs 25,000 to Rs 50,000 and this should be an important decision. Similarly, there is a demand from parents to increase the deduction for premiums paid by children to Rs 75,000. Experts believe that the limit for senior citizens should be increased from Rs 50,000 to Rs 1 lakh.
More people will take insurance
These decisions will increase the attraction of people towards insurance across India. The industry expects the government to increase tax incentives for insurance premiums under Section 80C and 80D. It will also provide separate tax deduction for home and motor insurance.
Latest Business News
