Pre-budget expectations

Published By: Dabang Duniya

Published Date: 27th January 2025

The excerpt discusses expectations around Union Budget 2025-26 and its potential impact on tax deductions for health and life insurance premiums under the Income Tax Act. Currently, under Section 80D, individuals below 60 can claim up to ₹25,000 per year for health insurance premiums, while life insurance premiums fall under Section 80C, with a combined limit of ₹1.5 lakh.

Rakesh Jain, CEO of Reliance General Insurance, expressed optimism that the government will increase tax incentives under Sections 80C and 80D, and potentially introduce separate tax deductions for home and motor insurance. The industry is also hoping for a rationalization of GST rates on insurance products to improve affordability and accessibility, thereby increasing insurance adoption across India.