Budget 2025: Experts Urge Increase in Tax Deduction Limits on Health Insurance Premiums

Published By: Moneycontrol

Published Date: 17th January 2025

​Experts are advocating for an increase in the Section 80D tax deduction limit for health insurance premiums in the upcoming Budget 2025. The current limits—₹25,000 for individuals under 60 and ₹50,000 for seniors—have remained unchanged since 2015, despite a 12–15% annual rise in healthcare costs.

Raising these limits to ₹50,000 and ₹75,000 respectively could alleviate the financial burden on taxpayers and encourage broader health insurance adoption. Additionally, there's a call to reduce the 18% GST on health insurance premiums to make policies more affordable. These measures aim to enhance healthcare accessibility and financial protection for the population.