Section 80D lets you deduct health insurance premiums from taxable income, up to Rs 25,000 for self and family and another Rs 25,000 for parents. Both limits double to Rs 50,000 when the person insured is a senior citizen, so the ceiling is Rs 1 lakh.
The deduction works only under the old tax regime. Below: the limits by age, who you can claim for, worked examples, the tax you save and how to claim it.
What Is Section 80D of the Income Tax Act?
Section 80D is the provision of the Income Tax Act, 1961 that allows individuals and HUFs to deduct health insurance premiums and certain medical costs. It sits in Chapter VI-A and is separate from the Rs 1.5 lakh limit under Section 80C.
| Particulars | Details |
|---|---|
| Who can claim | Individuals and Hindu Undivided Families |
| What is deductible | Health insurance premium, preventive health check-up, medical expenditure of uninsured senior citizens |
| Maximum deduction | Rs 1,00,000 a year |
| Tax regime | Old regime only |
| Payment mode | Any mode except cash for premiums; cash allowed for preventive check-ups |
| Counts for FY 2025-26 | Section 80D of the Income Tax Act, 1961 (AY 2026-27) |
| Equivalent in new Act | Section 126 of the Income-tax Act, 2025, from 1 April 2026 |
Work out your own 80D limit
Enter your age, your parents' age and the premiums you pay to see the deduction and the tax saved.
Section 80D Deduction Limits
The 80D limit depends on the age of the people insured, and the limit for you and the limit for your parents are counted separately. A person aged 60 or more at any time in the year is treated as a senior citizen.
| Who is insured | Self, spouse and children | Parents | Maximum |
|---|---|---|---|
| You and parents all below 60 | Rs 25,000 | Rs 25,000 | Rs 50,000 |
| You below 60, parent is a senior citizen | Rs 25,000 | Rs 50,000 | Rs 75,000 |
| You are a senior citizen, parents below 60 | Rs 50,000 | Rs 25,000 | Rs 75,000 |
| You and parents are all senior citizens | Rs 50,000 | Rs 50,000 | Rs 1,00,000 |
| No parents covered, you below 60 | Rs 25,000 | Nil | Rs 25,000 |
| No parents covered, you are a senior citizen | Rs 50,000 | Nil | Rs 50,000 |
The Rs 5,000 for a preventive health check-up is part of these limits and not an addition to them. It is also one Rs 5,000 across you and your parents together.
Who Can Claim Section 80D and For Whom?
Only an individual or a HUF can claim Section 80D, and the cover must be for a person the section names. You must pay the premium yourself, from your own money.
| Person insured | Claimable? | Note |
|---|---|---|
| Self | Yes | Your own policy or your share of a floater |
| Spouse | Yes | Whether or not the spouse earns |
| Dependent children | Yes | Premium for a working, non-dependent child does not count |
| Parents | Yes | Whether or not they depend on you |
| Parents-in-law | No | Not named in the section |
| Brother, sister, grandparents, other relatives | No | Not named in the section |
| HUF member | Yes | HUF claims for any of its members, same limits |
Which Payments Qualify and in What Mode?
Premiums on health insurance, preventive check-ups and medical bills of uninsured senior citizens qualify, and the payment mode differs for each. Premium must be paid before the financial year ends, so a premium due but unpaid on 31 March is not claimable.
| Payment | Allowed Mode | Condition |
|---|---|---|
| Health insurance premium | Any mode except cash | Policy from an insurer approved by IRDAI |
| Contribution to CGHS or a notified scheme | Any mode except cash | Counts toward the self and family limit |
| Preventive health check-up | Any mode, cash included | Up to Rs 5,000 in total, inside the limit |
| Medical expenditure of a senior citizen | Pay by cheque, card or UPI | Only if no health insurance is in force for that person |
The Insurance Regulatory and Development Authority of India (IRDAI) regulates the insurers whose policies qualify. Check that the insurer holds an IRDAI licence before you buy.
Section 80D Examples With Calculations
These three examples show how the limits, the check-up cap and the separate allowance for parents combine. Each assumes the old regime and payment by a mode other than cash.
| Item | Amount Paid | Allowed |
|---|---|---|
| Premium for self, spouse and child | Rs 22,000 | Rs 22,000 |
| Preventive check-up for self | Rs 5,000 | Rs 3,000 (balance of the Rs 25,000 limit) |
| Self and family total | Rs 27,000 | Rs 25,000 |
| Premium for father, aged 68 | Rs 41,000 | Rs 41,000 (limit Rs 50,000) |
| Total Section 80D deduction | Rs 68,000 | Rs 66,000 |
| Item | Amount Paid | Allowed |
|---|---|---|
| Premium for self, aged 62, and spouse | Rs 48,000 | Rs 48,000 (limit Rs 50,000) |
| Premium for mother, aged 85 | Rs 62,000 | Rs 50,000 (limit) |
| Total Section 80D deduction | Rs 1,10,000 | Rs 98,000 |
| Item | Amount |
|---|---|
| Two-year policy, premium paid in one go | Rs 30,000 |
| Claim in year 1 | Rs 15,000 |
| Claim in year 2 | Rs 15,000 |
How Much Tax Does Section 80D Save?
Section 80D saves your marginal tax rate multiplied by the deduction, plus 4% health and education cess. The table ignores surcharge and assumes you are in the old regime slab shown.
| Deduction Claimed | At 5% slab | At 20% slab | At 30% slab |
|---|---|---|---|
| Rs 25,000 | Rs 1,300 | Rs 5,200 | Rs 7,800 |
| Rs 50,000 | Rs 2,600 | Rs 10,400 | Rs 15,600 |
| Rs 75,000 | Rs 3,900 | Rs 15,600 | Rs 23,400 |
| Rs 1,00,000 | Rs 5,200 | Rs 20,800 | Rs 31,200 |
The Tax Saving Calculator shows how 80D stacks with 80C and other deductions.
Section 80D for Senior Citizens and Parents
A senior citizen gets a Rs 50,000 limit instead of Rs 25,000, and a senior citizen with no insurance can claim medical bills instead. Buying health insurance for parents is the most common way to use the second limit.
Which Health Policies Qualify for Section 80D?
Any health insurance policy from an IRDAI-approved insurer qualifies, whether you buy it online or through an agent. The premium of each policy adds toward the same limit.
| Policy Type | Eligible? | Note |
|---|---|---|
| Individual health policy | Yes | Covers one person |
| Family floater, mediclaim policy for family | Yes | One sum insured shared by self, spouse and children |
| Health insurance for parents | Yes | Separate limit of Rs 25,000 or Rs 50,000 |
| Senior citizen health plan | Yes | Up to Rs 50,000 for the senior citizen |
| Top-up and super top-up plan | Yes | Premium adds to the same limit |
| Critical illness cover (health policy) | Yes | Standalone plan from an approved insurer |
| Employer group health policy | No | Premium paid by the employer is not yours |
| Life insurance premium | No | Claimed under Section 80C, not 80D |
A mediclaim policy and a health insurance policy are the same thing for tax purposes. Compare cover, waiting periods and claim settlement record before you buy, and treat the tax deduction as a bonus, not the reason to buy.
What Does Not Qualify Under Section 80D?
Cash premiums, premiums for non-eligible relatives and any amount your employer paid do not qualify. These are the mistakes that most often cause a claim to be reduced.
Section 80D Under the Old and New Tax Regime
Section 80D is available only under the old tax regime, and the new regime under Section 115BAC gives no deduction for health insurance. You pick a regime each year, so the premium helps only in a year you choose the old one.
The Section 115BAC guide explains what the new regime allows. The Old vs New Tax Regime Calculator tells you which one leaves you with more money after 80D, 80C and HRA.
How to Claim the Section 80D Deduction
You claim Section 80D through your employer during the year and again in your income tax return. Keep the insurer receipts, because the Income Tax Department can ask for them later.
Choose the old regime
Compare both regimes first, since 80D has no value under the new one.
Pay by a mode other than cash
Pay the premium by cheque, card, net banking or UPI before 31 March.
Collect the proof
Keep the premium receipt or certificate from the insurer and the bill for any preventive check-up.
Declare it to your employer
Submit the proofs with your investment declaration so TDS is cut after the deduction.
Report it in the ITR
Enter the amounts under the Section 80D rows of the deductions schedule when you file on the e-Filing portal.
The ITR filing last date page lists the deadline that applies to your return.
Section 126 of the Income-tax Act, 2025
The Income-tax Act, 2025 carries the health insurance deduction in Section 126, and it applies from 1 April 2026. Section 80D still governs income earned up to 31 March 2026, which covers returns for FY 2025-26.
| Topic | Income Tax Act 1961 | Income-tax Act 2025 |
|---|---|---|
| Health insurance deduction | Section 80D | Section 126 |
| New tax regime | Section 115BAC | Renumbered in the new Act |
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Frequently Asked Questions: Section 80D
Disclaimer: Limits and conditions reflect the Income Tax Act, 1961 for FY 2025-26 and can change with each Finance Act. Confirm the current rules on the Income Tax Department website or with a qualified Chartered Accountant before claiming. This page is general information and not tax or insurance advice.