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Budget Expectations 2024: Will the Deduction Limit Increase & Section 80D Enter a New Tax Regime?

<p><strong>Budget Expectations:</strong> Because of the impending elections, the Union Budget for 2024–2025 will be an interim budget. The presentation is probably scheduled for February 1st, 2024. Nonetheless, a number of expectations and wishlist items related to healthcare and insurance are making the rounds, reflecting the potential and problems facing the industry at the moment.</p>
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<p><strong>Expectations for the interim budget in 2024: Here are some important things to think about:</strong></p>
<p>“We want to see a comprehensive approach to healthcare spending in the interim budget of 2024,” said Ankur Gigras, co-founder and CEO of HexaHealth. One of the primary issues with the Indian health system has been the cost of basic healthcare, which includes treating common health conditions, providing required drugs, tending to mothers and children, immunizing, and other preventive measures. Prioritizing needs to include equitable supply and utilization, targeting marginalized populations, outpatient care, and dynamic cost coverage.</p>
<p>Additionally, focus needs to be given to cutting-edge medical innovations such as artificial intelligence, which have the potential to enhance patients’ quality of life during surgeries, expedite insurance claims for necessary treatments, and increase the overall effectiveness of healthcare delivery. We hope that the budget will recognize these issues and actively encourage efforts to solve them in order to set the stage for a healthier, more technologically advanced future for our nation,” Gingras said.</p>
<p>While significant announcements could wait until after the general elections in 2024, Archit Gupta, founder and CEO of ClearTax, said that the next Union Budget offers a chance to resolve outstanding issues and lay the groundwork for future economic development.</p>
<p>This budget would probably put fiscal restraint first and steer clear of populist policies. Gupta said, “There is hope for possible alleviation in the area of personal income tax, especially under the New Tax Regime.</p>
<p><strong>80D Deduction Cap</strong></p>
<p>According to Gupta, in light of growing healthcare expenditures, the Section 80D deduction ceiling for medical insurance premiums should be raised from Rs 25,000 to Rs 50,000 for people and Rs 50,000 to Rs 75,000 for senior persons.</p>
<p>Furthermore, Gupta emphasized that bringing Section 80D benefits into line with the new tax structure will encourage fair access to healthcare.</p>
<p>Medical insurance premiums are not now deductible under the new tax law. Expanding this benefit will encourage broader use and improve accessibility to healthcare.</p>