Section 80D is the second most claimed Chapter VI-A deduction after Section 80C. It rewards you for paying health insurance premiums by reducing your taxable income. For a family with senior citizen parents, the deduction can reach Rs 1 lakh per year, saving up to Rs 31,200 (at the 30% slab plus cess) on the tax bill.
On the GST side, individual health and life insurance premiums are exempt at 0% after GST 2.0, while group and motor policies attract 18%; see our GST on insurance premiums rates and rules for 2026.
Despite its popularity, 80D is frequently claimed incorrectly. Taxpayers mix up the per-person and per-family limits, forget the payment mode restriction, or assume the new tax regime allows it. This guide covers every scenario with exact figures so you can claim the full lawful amount.
Who Can Claim Section 80D
Section 80D is available to:
- Individuals (resident or non-resident, though the medical expenditure provision for uninsured senior citizens is limited to residents)
- Hindu Undivided Families (HUFs) for insurance of any HUF member
Companies, LLPs, and partnership firms cannot claim Section 80D.
Tax regime restriction: Section 80D deductions are available only under the old tax regime. If you are on the new regime under Section 115BAC (the default for AY 2026-27), you cannot claim 80D. Factor this into your old vs new regime comparison before choosing.
Deduction Limits: The Complete Table
Tax Rate Chart
Section 80D Maximum Deduction by Family Scenario
Total deduction = self/family bracket + parents bracket. Both limits are independent.
Self below 60 + Parents below 60
Rs. 25,000 self/family + Rs. 25,000 parents
Self below 60 + Parents 60+
Rs. 25,000 self/family + Rs. 50,000 senior parents
Self 60+ + Parents below 60
Rs. 50,000 senior self/family + Rs. 25,000 parents
Self 60+ + Parents 60+
Rs. 50,000 senior self/family + Rs. 50,000 senior parents : maximum possible
Preventive Health Checkup (included within above)
Only 80D component where cash payment is permitted
Source: Section 80D, Income Tax Act 1961 (Section 126, Income Tax Act 2025) : old tax regime only
The limits for self/family and parents are separate. You add the two to get your total 80D deduction.
Note on parents: You can claim the deduction for your own parents (father and mother) only. You cannot claim for your spouse's parents (in-laws). The parent need not be financially dependent on you; all that matters is that you paid the premium.
What Qualifies for the Deduction
1. Health Insurance Premium
Premium paid to any insurer for a health insurance policy (also called mediclaim) covering:
- Yourself
- Your spouse
- Your dependent children
- Your parents (in a separate limit)
Top-up and super top-up health plans also qualify, provided they are issued by a registered insurer.
What does not qualify:
- Premium paid by your employer for a group health insurance policy does not count toward your 80D deduction. Only any additional premium that you pay from your pocket for a top-up or personal policy qualifies.
- Life insurance premium is not covered here; that falls under Section 80C.
- Premiums for policies covering siblings, uncles, aunts, or other relatives do not qualify.
2. Preventive Health Checkup
You can claim up to Rs 5,000 per year for preventive health checkup expenses for yourself, your spouse, dependent children, or parents.
Important details:
- The Rs 5,000 is included within the Rs 25,000 or Rs 50,000 limit, not in addition to it. If you pay Rs 24,000 as premium and Rs 5,000 for a health checkup, only Rs 25,000 is deductible (for a non-senior scenario).
- This is the only component of 80D where cash payment is allowed. All other 80D payments must be made through non-cash modes.
3. Medical Expenditure for Uninsured Senior Citizens
If your parents (or you yourself, if 60 or above) are not covered by any health insurance policy, you can still claim a deduction of up to Rs 50,000 for actual medical expenditure incurred during the year.
This covers:
- Doctor consultation fees
- Medicine costs
- Hospitalisation bills
- Expenses on recognised alternative systems (Ayurveda, Homoeopathy, Unani)
You cannot claim both health insurance premium and medical expenditure for the same person. It is one or the other:
- If a senior citizen parent has insurance: claim the premium paid (up to Rs 50,000)
- If a senior citizen parent has no insurance: claim the medical expenses actually incurred (up to Rs 50,000)
This provision applies only to resident senior citizens.
Payment Mode Rules
- Health insurance premium: any mode other than cash (UPI, net banking, cheque, draft, card).
- Medical expenditure for an uninsured senior citizen: any mode other than cash.
- Preventive health checkup: any mode, including cash, within the Rs 5,000 sub-limit.
If you pay a health insurance premium in cash, the entire amount is disallowed. Keep digital payment proof and the policy receipt.
Worked Example
Rajesh (age 45) pays the following in FY 2025-26:
- Health insurance for self, wife, and two children: Rs 22,000 (paid via UPI)
- Preventive health checkup for self: Rs 4,000 (paid in cash)
- Health insurance for parents (father 68, mother 65, both senior citizens): Rs 35,000 (paid via net banking)
Calculation:
Self and family:
- Premium: Rs 22,000
- Preventive checkup: Rs 4,000
- Total: Rs 26,000, but capped at Rs 25,000 (Rajesh is below 60)
- Eligible: Rs 25,000
Parents (senior citizens):
- Premium: Rs 35,000 (within Rs 50,000 limit)
- Eligible: Rs 35,000
Total 80D deduction: Rs 25,000 + Rs 35,000 = Rs 60,000
At the 30% slab plus 4% cess, this saves Rajesh Rs 18,720 in tax.
Section 80D and HUFs
A Hindu Undivided Family can claim Section 80D deduction for health insurance premium paid for any member of the HUF. The limit is Rs 25,000 (Rs 50,000 if the insured member is a senior citizen). The HUF cannot claim the separate parent bracket; that is available only to individual taxpayers.
Section 80D in the New Tax Regime
The new tax regime under Section 115BAC has been the default for individual taxpayers since FY 2023-24. It does not allow Section 80D deductions.
Under the FY 2025-26 slabs the old regime needs large deductions to win. For a salaried individual below 60 earning Rs 15 lakh, total deductions and exemptions (80C + 80D + HRA + Section 24 interest + 80CCD(1B) and others) must reach about Rs 5.4 lakh before the old regime matches the new regime tax of Rs 93,750 (before cess). At a salary of Rs 24.75 lakh or more, the break-even is about Rs 8 lakh. Below those levels, the new regime's lower slabs and higher rebate usually win. See our old vs new regime guide for the full comparison.
Transition to Section 126 (Income Tax Act 2025)
The Income Tax Act 2025 replaced the Income Tax Act 1961 on April 1, 2026. Under the new Act:
- Section 80D is renumbered to Section 126
- The deduction limits, eligibility, payment mode rules, and the preventive health checkup provision remain the same
- The old regime continues to exist as the opt-in alternative to Section 115BAC (now Section 202 under the 2025 Act)
For AY 2026-27 returns (income of FY 2025-26, filed in 2026), you will still see Section 80D on the ITR form. From Tax Year 2026-27 returns onwards (income from April 1, 2026), the forms will reference Section 126.
How to Claim Section 80D in Your ITR
- Gather proof: Collect premium receipts (with policy number and insurer IRDAI registration), preventive health checkup bills, and payment confirmations showing non-cash payment.
- Choose the old regime: Section 80D is available only if you opt for the old tax regime. Salaried filers can choose at ITR filing time. Business filers must file Form 10-IEA before the due date.
- Fill Chapter VI-A: In your ITR form (ITR 1, ITR 2, or ITR 3), go to the Chapter VI-A section. Enter the premium paid for self/family and separately for parents under the Section 80D fields.
- AIS check: If a health insurance premium entry appears in your Annual Information Statement (AIS) on incometax.gov.in, make sure the amount you claim matches it, and keep the insurer's receipt either way.
Tax Garden Can Help
Section 80D is one piece of the Chapter VI-A puzzle. Combining it with Section 80C, HRA exemption, and home loan interest under Section 24(b) requires calculating the total deduction stack and comparing it against the new regime threshold. If a family member has a serious illness such as cancer, dementia, or chronic renal failure, you may also be able to claim a separate deduction of up to Rs 1,00,000 under Section 80DDB for treatment expenses. Tax Garden's tax compliance services handle this end to end with flat-fee pricing.
Frequently Asked Questions
Can I claim Section 80D for health insurance I pay for my parents-in-law?
No. The parents bracket under Section 80D covers only your own father and mother. Premium you pay for your spouse's parents does not qualify for you. Your spouse can claim it for their own parents if your spouse pays the premium and files under the old tax regime. Your parents need not be financially dependent on you.
Can I claim both the premium and medical bills for my senior citizen father?
No. For a given senior citizen it is one or the other. If your father has health insurance, you claim the premium paid, up to Rs 50,000. Only if he has no health insurance at all can you claim actual medical expenditure incurred for him, again up to Rs 50,000. The medical expenditure route applies to resident senior citizens.
Will my 80D claim be rejected if I paid the health insurance premium in cash?
Yes. Health insurance premiums and medical expenditure for uninsured senior citizens must be paid by a mode other than cash, such as UPI, net banking, cheque or card. A premium paid in cash is fully disallowed. The only exception is preventive health checkup expenses, which can be paid in cash up to Rs 5,000.
How much tax does the Section 80D deduction save?
It depends on your slab. A Rs 60,000 deduction saves Rs 18,720 at 30% plus 4% cess, while the maximum Rs 1,00,000 deduction saves up to Rs 31,200. At the 20% slab the saving is about Rs 20,800. The saving exists only if you file under the old regime, so compare it with the new regime before deciding.
Can an HUF claim Section 80D for its members?
Yes. An HUF can claim a deduction for health insurance premium paid for any of its members, up to Rs 25,000, or Rs 50,000 if the insured member is a senior citizen. The separate parents bracket available to individuals does not apply to an HUF, so it cannot claim two limits.
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Sources
This guide is verified against incometax.gov.in/iec/foportal/ (Income Tax Department portal, Section 80D provisions and Chapter VI-A guidance for AY 2026-27), the Income Tax Act 2025 (Section 126 mapping), CBDT circulars on ITR forms for AY 2026-27, and confirmatory coverage from ClearTax (Section 80D guide), Bajaj Finserv (80D medical expenditure for senior citizens), Tax2Win (Section 80D deduction and preventive health checkup), PolicyBazaar (80D deduction limits), and BankBazaar (80D eligibility). All deduction limits reflect the amounts applicable for FY 2025-26 (AY 2026-27) as per the Finance Act 2025, and no changes to these limits were announced in Budget 2026.
