Section 80D of the Income Tax Act allows you to deduct health insurance premiums from your taxable income under the old tax regime. This is one of the most widely claimed deductions alongside 80C, yet many taxpayers under-claim it. Here is a complete breakdown.
Section 80D Deduction Limits (FY 2025-26)
| Who is Insured | Deduction Limit |
|---|---|
| Self, spouse, and children (all below 60) | ₹25,000 |
| Self, spouse, and children (any member is senior citizen) | ₹50,000 |
| Parents (below 60 years) | Additional ₹25,000 |
| Parents (senior citizens — 60+ years) | Additional ₹50,000 |
| Maximum possible deduction (family + senior citizen parents) | ₹1,00,000 |
Section 80D Calculation Examples
| Family situation | Premiums paid | 80D deduction |
|---|---|---|
| You (35), spouse and children; parents aged 58 and 55 | ₹22,000 + parents ₹30,000 | ₹22,000 + ₹25,000 = ₹47,000 |
| You (40) and family; parents aged 65 and 62 | ₹28,000 + parents ₹60,000 | ₹25,000 + ₹50,000 = ₹75,000 |
| You (62) and spouse; parents not covered | ₹55,000 | ₹50,000 |
| You (45) and family plus ₹4,000 check-up; parent aged 70 | ₹20,000 + ₹4,000; parent ₹45,000 | ₹24,000 + ₹45,000 = ₹69,000 |
Preventive Health Checkup Deduction
Within the overall 80D limit, you can also claim ₹5,000 for preventive health checkup expenses for self, spouse, children, or parents. This ₹5,000 is INCLUDED within the maximum 80D limit (not over and above). Cash payment is allowed for preventive health checkup (unlike insurance premium which requires non-cash payment).
Premium Payment Rules
- Premiums must be paid by any non-cash mode: cheque, NEFT, credit/debit card, UPI
- Cash payment is NOT eligible for 80D deduction (exception: preventive health checkup up to ₹5,000)
- Premium must be for a policy covering: health, critical illness, or accident riders
- Group health insurance provided by employer: only the portion you pay as employee premium qualifies
- Top-up plans and super top-up policies also qualify for 80D
Medical Bills for Senior Citizens Without Insurance
If a senior citizen (you, your spouse or your parents) has no health insurance, medical expenses paid for them — doctor fees, tests, medicines — can be claimed under 80D within the same ₹50,000 limit. Payment must be by a non-cash mode, and you cannot claim both premium and medical expenses for the same person beyond the limit.
What Documents to Keep for 80D Claim
- Health insurance premium payment receipts from insurer
- Policy document showing coverage period falls in FY 2025-26
- Bank statement showing non-cash payment
- For single premium policy: deduction claimed proportionately over policy period
How to Claim 80D in ITR
In ITR-1 or ITR-2, go to 'Part C — Deductions' → Section 80D. Enter: (1) Premium paid for self and family; (2) Preventive health checkup amount; (3) Premium paid for parents; (4) Whether parents are senior citizens. The system automatically calculates the allowable deduction subject to limits.
Section 80D Becomes Section 126 From Tax Year 2026-27
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. The health insurance deduction continues as Section 126 of the new Act with the same limits, and it is still available only under the old regime. For your FY 2025-26 return (AY 2026-27), you still claim it as Section 80D.
