Union Budget 2024: What Will the Budget Bring for the Insurance Sector? | Paisa Live

In the upcoming budget, the government is anticipated to make a major move concerning health insurance. Specifically, there is speculation that the limit for deductions on health insurance premiums under Section 80D of the Income Tax Act, 1961 might be increased. This deduction limit was last raised nine years ago in Budget 2015, when it was increased from ₹15,000 to ₹25,000. Since 2015, there has been no adjustment to this limit, despite the growing costs of healthcare and insurance premiums. An increase in the deduction limit would provide significant financial relief to taxpayers by allowing them to claim a higher amount of their health insurance premiums as deductions, thus reducing their taxable income. This potential change reflects the government's acknowledgment of the rising healthcare expenses and the need for updated policies to support taxpayers in managing these costs more effectively. The proposed adjustment is eagerly awaited by many who hope it will offer more substantial support for health insurance expenditures.