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 |
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
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.